Farmley, a health-focused snack brand, is expanding its physical retail presence and anticipates this channel to account for approximately 30-40% of its total business in the upcoming 2-3 years. After securing $6.7 million in funding in December, the brand has surpassed INR 300 crore in annual recurring revenue (ARR).
Utilizing its strong connections with over 5,000 farmers and its own production facilities, the brand provides a variety of products, including raw dried fruits and nuts, trail mixes, foxnuts, and natural desserts, among others.
Akash Sharma, the co-founder of Farmley, stated, “At present, our products are available in over 5,000 retail stores. We plan to broaden our offline footprint to encompass 60,000-70,000 outlets. While the online channel currently makes up a significant portion of our business, as we expand, we anticipate the offline channels to account for 30-40% or possibly even 50% of our total business in the next 2-3 years.”
In December, the brand secured $6.7 million in its pre-Series B funding round, with BC Jindal Group leading the investment. Existing investors DSG Consumer Partners, Omnivore, and Alkemi Partners also joined in this funding round.
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Sharma pointed out that Indian consumers are increasingly seeking guilt-free healthy snack options.
“We aim to provide delicious, satisfying, indulgent yet guilt-free snack choices. The recent funding infusion is enabling us to expand our reach and enhance our visibility,” he elaborated.
Last year, the brand enlisted Rahul Dravid as its brand ambassador.
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Discussing the brand’s growth, Sharma commented, “We are currently operating at an annualized run rate of INR 300 crore. We anticipate a growth of INR 60-70 percent in the next fiscal year. While we have experienced some profitable months, we project to achieve overall profitability by the following financial year.”
While raw dried fruits and nuts make up a significant portion of the overall business, the brand is also experiencing robust growth in segments like trail mixes, flavored foxnuts, and flavored dried fruits. Sharma highlighted that the company is also placing a strong emphasis on the on-the-go snacking category by providing products at competitive price points.
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The brand is also exploring a regionalization strategy.
“We have started exploring the introduction of products tailored for niche markets. These products will target specific regions, taste preferences, and demographics,” Sharma elaborated.