Yu, a brand that specializes in chef-crafted instant foods, has enlisted the services of Hardik Pandya as both an investor and brand ambassador. According to Bharat Bhalla and Varun Kapur, Co-Founders of Yu, Hardik and the brand have formed a long-term partnership to endorse the brand in India and abroad.
Although the brand declined to disclose the exact amount of investment made by the cricketer, it confirmed that the arrangement with Hardik Pandya is a structured transaction for a minority stake in the company.
“Hardik Pandya has participated with a minority investment in the company with the objective of creating long-term value. Funds from the investment will be used towards launching the brand’s maiden campaign during the ongoing IPL season as well as the upcoming ICC World Cup in India later this year,” said the Co-Founders.
During the series A round in October 2022, Yu secured Rs 20 crore in funding through a combination of equity and venture debt. The equity portion of the investment was spearheaded by prominent public markets investor Ashish Kacholia and featured involvement from existing investors, including Manish Choksi and Varun Vakil from the Asian Paints Promoter Group.
Additionally, the DPIIT’s Start Up India Seed Fund program, which supports technology-based start-ups with its INR 945 crore initiative, participated in the round and approved Yu as a beneficiary.
With 15 stock keeping units (SKUs) in its lineup, the packaged food brand is currently distributed through over 4,000 brick-and-mortar stores, as well as various e-commerce and q-commerce portals. In addition, it has established a presence on over 100 institutional campuses and also exports its products to countries such as South Africa, the US, and Singapore.
“We have also tied up with various airlines like SpiceJet and Akasa Air,” they added.
Presently, the brand generates 40% of its sales through online channels, with 10% stemming from exports, while the remaining 50% is evenly split between offline and other distribution channels.
Over the next year, Yu intends to expand its existing product portfolio by introducing 8-10 additional unique offerings.
Having established a 24,000 sq. ft. integrated facility in Gurugram, the brand has reported a revenue growth of 100% in the past 6 months.
“We are on track to clock Rs 14-15 crore revenue during Q1FY24 by selling close to 2 million units. At an overall level, we are growing at a rate of 75 per cent QoQ,” they stated.
By the end of this quarter, the brand is eyeing to touch the break-even point.