Renowned investor in the public market Ashish Kacholia and Asian Paints Promoter Group (Manish Choksi, Varun Vakil) have invested Rs 55 crore in Yu.
Yu is an omnichannel consumer brand that aims to offer a range of instant food and beverage products using 100% natural ingredients.
Provide exits to early stage investors
As part of this Series B funding round, the startup has also provided an exit to some of its early-stage investors who have seen over 4x returns on their investment.
He funds It comes at a key turning point for Yu, which is looking to increase distribution, strengthen its food portfolio and expand its beverage range with its newly launched 100% fruit juices.
“It is very motivating to have raised significant growth capital also from very eminent investors. We greatly appreciate your support. Yu version 2.0 is now officially underway with the launch of 100% fruit juices, our second product category after instant foods,” founders Bharat Bhalla and Varun Kapur said in a joint statement.
Purpose of fundraising
With a current annualized revenue run rate of Rs 50 crore, Yu aims to triple revenue in the next two years. The brand is focused on greater distribution penetration, new product launches and further category expansion, the statement said.
Yu’s offerings.
Yu started with instant noodles and pastas in 2021 and has since expanded into ready-to-cook natural noodles, pastas and drinks, which contain ZERO concentrate or added sugar.
In addition to gaining significant market share in the cup noodle category, the brand is now one of the leading players in Hakka noodles across all online channels (e-commerce and quick commerce).
Yu says some of its products, such as 100% whole grain noodles and 100% coconut water, have already achieved strong sales on various distribution platforms, with volumes exceeding those of existing brands.
This is due to Yu’s DNA of offering better-for-you products using 100% natural ingredients without compromising on taste at affordable prices.
Growing presence in the market
Yu has developed an omnichannel distribution network with an offline presence in over 7,500 stores across India. The brand is available across India across all Q-com (Blinkit, Swiggy Instamart and Zepto) and E-com (Amazon, Flipkart Grocery, Dmart Ready) channels as well as institutional segments (Akasa Air, SpiceJet).
It has also developed South Africa as a key market where its products are now sold in more than 2,000 outlets.
The brand is experiencing significant commercial traction having sold more than 1 million units in the month of September 2024.
Yu operates from a 30,000 sq ft integrated facility in Gurugram that is UK FSSC 22000 and US FDA certified and its second facility is already under construction. Notably, it has expanded its team to more than 200 employees.
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