After joining Gruhas Gusto – A 6-month accelerator program by Gruhas, Jubilant Bhartia Family Office, Sabre Ventures (DLF Family Office), and Anthill Ventures, Delhi based Evolve Snacks, a D2C health snack brand is now looking for investors to join their journey.
“Our participation in programs like Gruhas Gusto involves equity exchange and a trial period of 4-6 months before investment. Successful businesses appreciate this patient approach, contrasting with the typical focus solely on revenue. Being profit-positive is in our DNA. Even with modest margins, maintaining profitability ensures sustainable growth, despite competitive pressures from lower-priced competitors like Haldiram’s and others. And now we are looking at more investors to join us,” said Angad Sehgal, the founder of Evolve Snacks, who is on a mission to transform the Indian snacking landscape with a unique blend of health and taste.
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One of the standout achievements of Evolve Snacks is its early profitability. “We are a PAT positive company, making a small 4-5% profit on our revenue,” Sehgal highlighted. This focus on profitability has attracted significant interest from investors, including being part of the Gruhas Gusto program. “Businesses that have lasted longer appreciate being PAT positive. They don’t understand why you’re burning so much money,” Sehgal remarked.
Discussing the company’s roadmap, Sehgal asserts that the next six months are crucial for the company, as they already have one or two investors lined up.
Innovative and Affordable Product Range
“These are individuals with long-term visions, who understand the importance of patient capital in building a company the right way. Finding investors who share our vision and approach has been challenging, but we’re optimistic about securing two or three more and finalizing our funding round,” he said.
Innovative and Affordable Product Range
Sehgal’s journey into the world of healthy snacking began during his tenure at major corporations like Pantaloon Retail India and Dabur. “I saw a gap in the market. People are still looking for healthier snacks. They want to understand what it is, and how it’s healthier,” Sehgal explained. His goal was clear: to offer affordable snacks without compromising on taste, using healthier ingredients like rice bran oil and avoiding preservatives.
Evolve Snacks boasts an impressive array of over 100-200 SKUs, catering to the diverse tastes of Indian consumers. “We’ve developed products that are all affordable. For example, our snacks are only about 20% more expensive than Haldiram’s,” Sehgal noted. The range includes unique offerings like beetroot bhujiya, ragi chips, and millet snacks, all designed to provide the same great taste with healthier ingredients.
With 90-95% of its sales coming from online channels, the company has served around 5 to 7 lakh customers, with a repeat rate of 40%. Sehgal emphasized the importance of sustainable growth, stating, “Scaling well with speed is very important. Most companies want to scale up quickly and end up burning out. We focus on understanding what works for us and targeting those customers.”
Competition in the market
Additionally, unlike competitors who have shifted away from health-focused products, Evolve Snacks remains committed to its mission. “Many companies start with health-first positioning but soon switch to broader snack categories. We took the time to understand our products, and for us, products like Ragi Chips are top sellers,” Sehgal stated.
Discussing the competition, Sehgal shared that competing with giants like Haldiram’s is no small feat, but he is confident in his brand’s unique value proposition. “It will take time because their businesses have been built over 50-60 years. Our company is only five years old. It will take patience and consistent quality to build that trust,” he said. The key, according to Sehgal, is maintaining a clear narrative around quality, affordability, and taste.
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Targeting Tier 2 and Tier 3 Cities
While Evolve Snacks initially focused on major metros like Delhi, Mumbai, Bangalore, and Hyderabad, Sehgal revealed that a significant portion of their growth has come from smaller towns. “Forty to fifty percent of our market has organically grown from smaller towns. Places like Shillong, Guwahati, and small towns in Chhattisgarh and Nagpur,” he shared. These areas, with their rising purchasing power and loyalty, are becoming crucial to Evolve Snacks’ strategy.
Future Plans
Evolve Snacks has not yet ventured into the offline retail space but plans to in the next 2-3 years. Currently, the brand focuses on strong online presence and strategic partnerships with platforms like Flipkart and Amazon. “Different platforms require different pricing strategies. You need to understand the motivation behind each platform,” Sehgal explained.
To strengthen its online presence, the brand also considering to go for quick commerce. According to Sehgal, this move aims to capitalize on current momentum and expand its market presence further through modern trade channels. “This strategy outlines our roadmap for the next one to two years,” he said.
“Following this phase, as we achieve scalability and market penetration, our strategy will pivot towards reaching the GT market—Tier 2 and Tier 3 towns, broadening our reach and impact,” he added.