Snack Startup Open Secret raises Series A funding led by Sixth Sense Ventures
Matrix Partners India, an existing investor, also contributed to the capital raise.
The funds will be used by Open Secret to expand its product portfolio, build capacity, expand its omnichannel distribution presence, and hire senior level talent.
Open Secret, founded in 2019 by Ahana Gautam and Udit Kejriwal, makes healthy cookies, chips, spreads, nuts, and shake mixes.
Gautam said that the company's revenue has increased tenfold in the last year.
“We want to be the challenger brand targeting the $10 billion snacking industry in India. We are stealing the market from established players and trying to create a niche,” she said.
Other angel investors who have backed the company include Paytm founder Vijay Shekhar Sharma, Snapdeal cofounders Kunal Bahl and Rohit Bansal, and boAt CEO Vivek Gambhir. In December 2019, Open Secret raised its seed round.
“With a strategic focus on the kids’ segment and the core value proposition around un- junking, we believe Open Secret has the ability to create a strong niche for itself,” said Nikhil Vora, founder and CEO of Sixth Sense Ventures.
The healthy snacking industry is gaining traction among risk investors, with companies such as Happilo, Slurrp Farm, Yoga Bar, SnackAmor, and Keeros Foods raising capital from investors in the last 12-18 months to grow their businesses.
According to a report published last year by Avendus Capital, direct-to-consumer brands in fashion, beauty and personal care, food and beverages, and electronics are expected to generate $100 billion in revenue in the country.
Open Secret, a Mumbai-based company that aims to "put the whole in wholesome," was founded in 2019 and is targeting the children's snacking white space. The startup released its first batch of nutty cookie products with the goal of increasing consumer preferences for “better-for-you” snacks, with a focus on tiffin consumption.