Through Pluckk, the Essar group has ventured into the food and beverage segment, rapidly establishing itself as a significant player in the category over the next five years.
Funded by Exponentia Ventures and backed by Essar Capital, Pluckk offers a wide range of fresh fruits and vegetables, both whole and packed, as well as processed foods such as juices, salads, dips, ready-to-eat foods, and meal kits.
Launched just two years ago, the brand has already doubled its revenues, selling 1.8 million packets a month to a customer base of 5 lakh, according to Chief Financial Officer Nelson D’Souza. By the end of FY24, it reached an annual recurring revenue (ARR) of INR 100 crore and is anticipated to triple in FY25.
“We’ve doubled revenue in the past year, and I believe that trajectory will persist,” D’Souza remarked. He further noted that the company was currently operationally profitable and aimed to achieve EBITDA positivity within the coming 12 months.
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Originally launched as a digital-exclusive brand, it has formed partnerships with leading e-commerce platforms like Amazon, Zomato, Swiggy, and bigbasket. Additionally, significant investments are being directed towards its own dedicated app. Moreover, the brand maintains a modest presence in brick-and-mortar outlets, including Spencer’s and Nature’s Basket.
At present, its delivery network covers Bengaluru, Mumbai, and Delhi, with intentions to broaden its reach to five cities this year, followed by expansion to 10 cities the next year, and eventually reaching 15 cities within two years. Each of these major cities is now equipped with processing centers or fulfillment centers.
The objective is to establish a nationwide distribution network or supply chain capable of supporting its expansion across India.
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The company initially secured $5 million in funding, with plans for further fundraising to support its expansion. “As we keep growing, we’ll explore additional funding opportunities,” D’Souza stated. “Expansion requires significant capital expenditure, so we’ll consider raising funds from the market when the timing is right.”
The value-added food segment, comprising juices, dips, salads, and do-it-yourself meal kits, is anticipated to experience rapid growth. This segment constitutes approximately half of the total portfolio, with the number of products increasing from 300 last year to around 500.
For instance, juices were introduced just last month and have already generated sales amounting to an annual recurring revenue (ARR) of INR 6 crore.
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D’Souza noted that over the past few years, the company has focused on establishing and expanding its essential infrastructure. Now, the aim is to scale up operations. “In the next five years, I believe we will emerge as a significant player in this space,” he remarked.