In a Series B funding round that was co-led by Ashish Kacholia and the Asian Promoter Group, consumer food brand Yu has raised Rs. 55 crore ($6.5 million).

Some of the company's seed-stage investors, who have reportedly earned over 4x returns on their investments, are said to have been given an exit.

According to a news release from Yu, the additional funding will be utilized to increase distribution, bolster its culinary offering, and broaden its beverage selection with recently introduced 100% fruit juices.

Using only natural ingredients, Yu is an omni-channel consumer brand that was co-founded in 2021 by Bharat Bhalla and Varun Kapur. The company offers a variety of rapid food and beverage products. The brand began with fast cup noodles and pasta, but it has since grown to include ready-to-cook noodles, pastas, and natural drinks that do not have any added sugar or concentrate.

Yu asserts to have created an offline presence in more than 7,500 outlets around India as well as an omni-channel distribution network. All Q-commerce platforms (Blinkit, Swiggy Instamart, and Zepto), E-commerce channels (Amazon, Flipkart Grocery, Dmart Ready), and institutional segments (Akasa Air, SpiceJet) carry the brand. It is accessible throughout India. Additionally, it has expanded into the South African market, where more than 2,000 retail locations currently sell its goods.

Expressing to this investment, Yu Founders Bharat Bhalla and Varun Kapur says, “From our current annualized revenue run rate of Rs 50 crore, the Series B growth capital should allow us to grow revenues 3x over the next 2 years. This will include enhanced distribution penetration, new product launches and further category expansion.”