Team Startupcity

·  Khari Foods raises  Rs 3 crore in seed round led by Meri Punji IMF to boost clean-label snack innovation.

·  Brand reports 208% ARR growth, driven by palm oil-free, maida-free snacks like Ragi Crispies and Jowar Puffs.

·  Funding to accelerate R&D, expand workforce, and strengthen presence in Tier I & II cities.

Delhi-based clean-label snacking firm Khari Foods has raised Rs 3 crore (about $350,000) in a seed funding round led by Meri Punji IMF Private Limited, a milestone in the brand's journey to provide healthier, guilt-free snack solutions to Indian consumers. The investment will be used in research and development, scaling manufacturing capacity, increasing digital and offline distribution, and hiring talent.

Established in 2022 by Yash and Sunil Bansal, Khari Foods was conceptualized to revolutionize India's snacking culture with maida-free, palm oil-free, and preservative-free options without compromising on taste. The products of the brand are Ragi Crispies, Jowar Puffs, Oats Crispies, and date-based snacks that have been created to address the needs of health-aware consumers between 20 and 40 years, particularly in cities and semi-cities.

"We are dedicated to creating a brand that is clean, nutritionally well-balanced, and consumer-centric in every sense," added Yash Bansal, Co-founder, Khari Foods. "This round enables us to move faster on our innovation pipeline, expand our talent pool, and further build our presence in Tier I and Tier II cities, where clean-label demand is growing very fast."

The company has already demonstrated strong traction since the start, bootstrapped for profitability and recording robust month-on-month growth. Khari Foods owns a cutting-edge manufacturing unit based out of Haryana, where production quality, sourcing, and supply chain management are completely under their purview. Vertical integration has played a pivotal role in maintaining the consistency and integrity of its product line.

With this capital, the business intends to expand its clean-label snack line, consider new product categories, and increase brand presence through a thoughtful blend of online marketing and contemporary retail visibility. The startup is now targeting a 208% boost in its Annual Revenue Run Rate (ARR) for FY25, highlighting increased market demand for healthier snacking options in India.

Meri Punji IMF, the anchor investor in the round, had strong belief in the brand vision. "Khari Foods is creating a category-defining brand that sits at the intersection of wellness and convenience. We think their product philosophy, customer focus, and high operational control differentiate them in the burgeoning clean snacking space," said a spokesman.

With India's health and wellness food space growing exponentially, Khari Foods hopes to establish itself as a mass market alternative within a market space long dominated by unhealthy, processed snack foods. The brand's uncomplicated emphasis on clean ingredients, creative formats, and affordability has already started to speak to the contemporary consumer who seeks transparency and nutrition at the center of their everyday diet.