Reliance Consumer Products, a subsidiary of Reliance Retail, is set to acquire direct-to-consumer (D2C) snacking startup TagZ Foods for INR 28 crore ($3.5 million). This acquisition appears to be a distress sale, as TagZ had struggled to scale its business and halted production a few months ago.
TagZ secures $3.2 mn despite reports loss of INR 10.7 Cr
Notably, the D2C startup raised $3.2 million in funding across multiple rounds but reported a net loss of INR 10.7 crore on an operating revenue of INR 9.6 crore in FY23. Its products were unavailable on ecommerce platforms and retail stores for months, leading to employee departures.
Continue Exploring: CAIT targets Quick Commerce platforms over alleged law violations
Founded in 2019 by Anish Basu Roy and Sagar Bhalotia, TagZ is an omnichannel snacking brand offering popped potato chips, gourmet dips, and cookies. Despite featuring on TV show Shark Tank India and securing funding from notable investors, including former Indian cricketer Shikhar Dhawan, the startup faced challenges.
ITC acquires Yoga Bar, Hindustan Unilever takes over Ozivia & Wellbeing Nutrition
Meanwhile, the acquisition highlights the growing interest of FMCG giants in D2C brands. Recently, ITC acquired Yoga Bar, and Hindustan Unilever acquired Oziva and Wellbeing Nutrition.
Further the FMCG major’s move to acquire TagZ Foods underscores its expansion strategy in the consumer goods sector. The deal’s size may change post due diligence.
Continue Exploring: Swiggy makes strong market debut, surges 16.91% above IPO price
In addition, TagZ competed with established brands like BRB, Too Yum, Lays, and Uncle Chips. Its investors include Dexter Angels, Agility Ventures, Venture Catalysts, and Klub.
Looking ahead, the acquisition comes amid the rise of D2C brands in India. Many have been acquired by FMCG giants, indicating a trend towards consolidation in the industry.
