Millet Snacks Firm Troo Good raises $7.4 million led by OAKS Asset Management
Troo Good, a millet snacks firm based in Hyderabad, has raised $7.4 million in Series A funding from OAKS Asset Management.
According to a senior official, the cash would be used to grow the company's business across the country and to improve its research and development and manufacturing skills.
This is the company's first institutional capital round since its inception in 2018. In 2018, it had raised $1 million from angel investors.
“We have come a long way in creating a robust pipeline of products and corresponding expertise and are now looking to scale rapidly,” says Raju Bhupathi, founder of Troo Good. “We expect to have a significant ramp-up in the millet-based snacking segment over the next decade.”
Troo Good began by providing millet-based chapatis and parathas to schools, IT businesses, and sky kitchens, and by the end of 2018, they had produced a chikki based on a unique recipe combining many varieties of millets.
According to Bhupati, the company is currently generating Rs 70 crore in annualised income and serves approximately one million people every day across Telangana and Andhra Pradesh, the majority of whom are youngsters.
“With the help of the capital, the company expects to reach a revenue run rate of Rs 300 crore over the next 18-24 months,” says Bhupati.
According to the business, the Indian snacking market was worth $12 billion in FY21, or Rs 88,850 crore, and is predicted to increase at a rate of more than 12% per year for the next decade.
The chikki market in India (where Troo Good is a major participant) is believed to be worth over $1 billion, or roughly Rs 7,400 crore.
“This market is completely unorganised – dominated by large local players and home cooking outfits. The core product (nuts, jaggery and sugar) is consumed across India with different names,” Bhupati said.
Troo Good is also developing a number of other millet-based products that will take advantage of the distribution channel that its chikki has established. The business is profitable and does not require a lot of capital.
“The company has decent gross margins and is in a market which is largely untapped. We are betting on the company’s ability to scale faster across geographies and also through a wider product line,” says Vishal Ootam, CEO and founder of OAKS Asset Management.
According to a senior official, the cash would be used to grow the company's business across the country and to improve its research and development and manufacturing skills.
This is the company's first institutional capital round since its inception in 2018. In 2018, it had raised $1 million from angel investors.
“We have come a long way in creating a robust pipeline of products and corresponding expertise and are now looking to scale rapidly,” says Raju Bhupathi, founder of Troo Good. “We expect to have a significant ramp-up in the millet-based snacking segment over the next decade.”
Troo Good began by providing millet-based chapatis and parathas to schools, IT businesses, and sky kitchens, and by the end of 2018, they had produced a chikki based on a unique recipe combining many varieties of millets.
According to Bhupati, the company is currently generating Rs 70 crore in annualised income and serves approximately one million people every day across Telangana and Andhra Pradesh, the majority of whom are youngsters.
“With the help of the capital, the company expects to reach a revenue run rate of Rs 300 crore over the next 18-24 months,” says Bhupati.
According to the business, the Indian snacking market was worth $12 billion in FY21, or Rs 88,850 crore, and is predicted to increase at a rate of more than 12% per year for the next decade.
The chikki market in India (where Troo Good is a major participant) is believed to be worth over $1 billion, or roughly Rs 7,400 crore.
“This market is completely unorganised – dominated by large local players and home cooking outfits. The core product (nuts, jaggery and sugar) is consumed across India with different names,” Bhupati said.
Troo Good is also developing a number of other millet-based products that will take advantage of the distribution channel that its chikki has established. The business is profitable and does not require a lot of capital.
“The company has decent gross margins and is in a market which is largely untapped. We are betting on the company’s ability to scale faster across geographies and also through a wider product line,” says Vishal Ootam, CEO and founder of OAKS Asset Management.
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