In a major development in India’s thriving health food segment, Khetika, a rapidly growing healthy food startup, has raised $18 million in a fresh funding round aimed at scaling its operations, expanding distribution networks, and accelerating R&D for new product launches. The funding comes amid rising consumer demand for natural, preservative-free, and nutritionally balanced food products across urban and Tier-II markets.
Funding round details
The Series B round was led by Sequoia Capital India and Matrix Partners, with participation from existing investors including Lightspeed India and notable angel investors from the FMCG and retail sectors. With this round, Khetika’s total funding has now crossed $28 million, marking it as one of the most well-capitalised startups in the healthy packaged food space.
Key use of funds
According to company officials, Khetika plans to deploy the $18 million to:
- Expand its presence to 100+ cities from the current 35 by the end of FY26.
- Set up a new 1 lakh sq ft processing and packaging facility in Maharashtra to cater to growing demand.
- Launch 25 new SKUs in health snacks, millet-based cereals, and cold-pressed juices in the next twelve months.
- Strengthen its direct-to-consumer (D2C) platform and last-mile delivery logistics for urban micro-markets.
- Invest in building its nutrition R&D team to innovate for diabetic-friendly and child nutrition segments.
Khetika’s growth story so far
Founded in 2019 by IIT Bombay alumni Ananya Rao and Vishesh Patel, Khetika started with a small line of organic lentils and cold-pressed oils targeting health-conscious metro consumers. Within five years, it expanded into:
- Millet-based ready-to-cook mixes
- High-fibre snacks like roasted seeds and granola bars
- Immunity-boosting traditional spice blends
- Cold-pressed juices and wellness shots
Its revenue has grown at a CAGR of 110% since FY21, with FY25 estimated net revenue crossing Rs 210 crore, backed by its omnichannel distribution strategy involving leading retail chains like Big Bazaar, Nature’s Basket, Reliance Smart, and over 30% sales through its D2C website and apps.
Strategic priorities post funding
| Focus Area | Details |
|---|---|
| Geographical expansion | Targeting North Indian states, especially Delhi-NCR, Punjab, Haryana, and Uttar Pradesh, with logistics hubs in Noida and Gurugram |
| Product portfolio | Entry into millet noodles, probiotic beverages, and kids’ healthy snack boxes |
| Brand awareness | Strengthening influencer marketing, social media content, and health awareness campaigns |
| Technology integration | Enhancing its AI-based nutrition recommendation engine and supply chain analytics |
Investor perspectives
Sequoia Capital India partner Radhika Sharma said:
“Khetika is well positioned to build India’s leading health-focused food brand with deep consumer trust and product innovation. Their strong team, data-led approach, and brand authenticity make them an ideal long-term investment.”
Matrix Partners noted that Khetika’s direct sourcing model from farmers in Maharashtra, Karnataka, and Rajasthan ensures supply chain resilience and enhances brand credibility at a time when conscious consumerism is growing.
Competitive landscape
Khetika operates in a competitive space dominated by:
- Yoga Bar (backed by ITC)
- Slurrp Farm (millet-based kids foods)
- True Elements (breakfast and snacks)
- Tata Soulfull (FMCG-led millet brand)
- MTR Foods’ 3-minute health range
However, analysts point out that Khetika’s focus on direct farmer sourcing, its strong digital brand presence, and focus on regional traditional nutrition set it apart, ensuring it builds a strong loyalty base.
Consumer trend tailwinds
The Indian health food market is projected to reach $30 billion by FY30, driven by:
- Increased health awareness post-pandemic
- Rising lifestyle diseases among urban populations
- Government focus on millets under the International Year of Millets 2023 initiatives
- Urbanisation and nuclear family meal-time convenience needs
Future plans
Khetika plans to:
- Explore global markets, starting with Gulf Cooperation Council (GCC) countries by mid-2026.
- Collaborate with food tech institutes to develop diabetic-friendly rice alternatives and low glycemic index flours.
- Build a nutrition advisory board of doctors and dieticians to endorse product formulations.
Financial performance snapshot
| Financial Year | Revenue (Rs crore) | EBITDA Margin (%) | Net Loss/Profit (Rs crore) |
|---|---|---|---|
| FY21 | 18 | -12 | -8 |
| FY22 | 48 | -6 | -4 |
| FY23 | 96 | 2 | +1.8 |
| FY24 | 150 | 6 | +6.2 |
| FY25 (estimated) | 210 | 8 | +12.5 |
Industry expert view
Nutrition consultant and startup advisor Rajeshwari Prasad said:
“Khetika’s strong brand ethos around clean labels and farmer partnerships resonates with millennial and Gen-Z buyers. The fresh funding will allow it to build distribution scale quickly, but it must balance rapid growth with product quality and supply chain integrity.”
Conclusion
The latest funding round cements Khetika’s position as a serious challenger in India’s health foods market. As it continues to expand its footprint, innovate in the traditional nutrition segment, and strengthen its brand trust, the coming years could see it emerge as one of India’s most valuable food startups in line with global health food giants.
Disclaimer: This news article is for informational purposes only. Investments in startups carry market risks. Readers are advised to consult their financial advisor before making any investment or business decision based on these insights.
