Khoya, the Indian luxury sweets brand operated by Lone Star Hospitality Pvt. Ltd. based in Delhi, has secured pre-seed funding worth INR 6.15 crore. The funding round was spearheaded by Riga Foods, a company founded by Chef Ritu Dalmia and a portfolio company of Max Group’s Chairman Analjit Singh’s family office. In addition to Riga Foods, other investors such as Priya Paul also participated in the funding round.
Khoya specializes in creating and manufacturing high-end traditional mithai and luxurious confectionery items, which are sold directly to customers. One of their newer offerings is luxury mithais, which were introduced about five years ago and can be priced anywhere between INR 20,000-30,000 per kilogram.
The company intends to utilize the funds for developing new products and venturing into new categories of related consumer goods. They plan to expand their retail presence in various other metropolitan cities throughout India and also plan to enter international markets.
The company faces competition from Gur Chini, Arq Mithai, Meethi, Bombay Sweet Shop, and other similar businesses. They sell their products both online and in physical retail spaces, including hotels.
According to Sid Mathur, the Founder of Khoya, the company was established in 2016 with the goal of revitalizing mithai by utilizing natural ingredients and meticulously handcrafting each piece, thoughtfully presenting and packaging them. The company boasts a clientele that includes prestigious brands such as Louis Vuitton, Cartier, Good Earth, and Lexus, among others.
Mathur said, “Khoya was a passion project, and we took our time to build it. We dived deep into the history, travelled, searched for ingredients, worked hard on recipe development, and spent months on packaging. The product spoke for itself, and Khoya has grown organically through only reinvestment of profits. With this capital raise, we will be able to take the brand to a new level, expanding our kitchens, teams & distribution both in India as well as internationally.”
Co-founder of Riga Foods, Dalmia said, “For me, this brand has always been the benchmark of luxury mithai, and we are thrilled to be part of their journey. With obvious synergies of catering, kitchens and restaurants, we have a head start on this relationship, and can’t wait to see this company grow.”
The Indian sweets and premium gifting market, as per industry estimates, is expected to be valued at INR 15,000 crore by 2028 for the organized sector.
