Snacking brand Natch has secured a significant boost with the successful closure of a seed funding round, raising INR 3 crore. This round was spearheaded by Artha Venture Fund (AVF) in collaboration with the DSP Group’s family office, a prominent player in the financial services sector. The infusion of funds is set to play a pivotal role in Natch’s expansion strategy, with a keen emphasis on bolstering omnichannel presence, optimizing distribution networks, intensifying marketing efforts, and fostering innovative product development.
Established in 2017, Natch has garnered a reputation for its unwavering commitment to delivering natural, gluten-free, and vegan snacks, free from artificial flavors, preservatives, and trans fats. The company’s rapid growth trajectory is set to receive a substantial boost with the recent funding, positioning Natch to solidify its leadership in the premium snacking landscape within the Indian market.
Matthew Taff, Co-Founder of Natch, expressed his enthusiasm for the partnership, stating, “We are thrilled to partner with Artha Venture Fund and DSP Family Office, marking an important milestone for Natch. Their support is crucial as we aim to set a new standard in premium snacking in India. With this investment, we are well-positioned to broaden our reach, enhance our production capabilities, and introduce innovative products to our customers worldwide.”
Natch has firmly positioned itself in both retail stores and e-commerce channels, witnessing an impressive 300% surge in revenue over the last 18 months. Additionally, there has been a notable 30% growth in customer-facing touchpoints. The e-commerce segment plays a substantial role, contributing 15% to the startup’s overall sales.
Looking ahead, Natch is set to broaden its footprint in metropolitan areas and tier-1 cities across India, with a keen emphasis on deepening its presence in the quick commerce sector.
Anirudh A. Damani, Managing Partner at Artha Venture Fund, emphasized the growing shift towards healthier snacking options, noting, “The global snacking industry is undergoing a significant transformation, with a noticeable shift towards healthier options. Natch has successfully captured a niche in this evolving market with its commitment to quality and understanding consumer preferences.”
Artha Venture Fund (AVF) stands out as a notable early-stage micro VC firm, boasting a substantial corpus of INR 225 crores. Its primary focus lies in the B2B SaaS and D2C segments. The fund’s diverse portfolio comprises 31 investments, featuring renowned startups like AgniKul, LenDenClub, Everest Fleet, and Daalchini.
According to Statista, the Indian snacks market was valued at $66.92 billion in 2023, with an anticipated annual growth rate of 9.01% CAGR until 2028. The market volume is projected to reach 19.02 billion kg by 2028, with an expected growth rate of 6.6% in 2024.