- Haldiram plans to invest in 10-15 consumer products and goods start-ups over the next two years
- The segment’s market value is estimated at about $ 50 billion and growing strongly at about 7-10%.
- The funds have already been strategically allocated to strengthen the team, processes, and presence of the incubator.
“Venture Catalyst (VCats) started a partnership with one of India’s famous sweets & snacks manufacturer and CPG brand Haldiram’s to boost its overall understanding and facilitation of startups in this sector”, Integrated incubator Venture Catalysts said on Tuesday.
Haldiram plans to invest in 10-15 consumer products and goods start-ups over the next two years with the help of VCats. VCats has already incubated start-ups such as men’s grooming brand Beardo, female hygiene brand PeeSafe and herbal energy shot drink FYRE in the past.
Daily consumed goods comprising every day by the average consumer has shown significant growth potential in the Indian market, and the current association aims to utilize this opportunity. FMCG sector is the larger segment which includes the CPG sector, and it has a very strong potential in India. Therefore, The segment’s market value is estimated at about $ 50 billion and growing strongly at about 7-10%. The country, with its young population and their growing income levels, also increased spending, presents a unique opportunity for CPG startups.
The journey of Haldiram began in 1937 while starting a business was not a ‘trend’ but an extremely difficult task and a highly uncertain step. The core responsibility of Venture Catalysts continues to be the development of start-up eco-system in India which will be further empowered by Haldiram’s experience of building strong brands. While Haldiram’s invested amount in VCats is very confidential, the funds have already been strategically allocated to strengthen the team, processes, and presence of VCats to ensure the creation of an ecosystem to built and suit the needs of the CPG industry.
When several large domestic legacy companies and MNCs in the FMCG sector are actively looking to tap the flourishing start-ups in this segment, Haldiram’s move comes in at the right time. FMCG giant Unilever recently invested in Pureplay Skin Sciences (India) Pvt Ltd which sells the Plum brand of skin care products through its venture capital and private equity arm, Unilever Ventures.
Last year, Colgate-Palmolive invested in an online company of men’s grooming firm Bombay Shaving Company.
United Spirits Ltd has also invested in HipBar, a Bengaluru-based online drinks ordering platform. Home-grown FMCG company Marico has acquired Ahmedabad-based men’s grooming start-up Beardo.
As shared by Vcats, the funds have already been strategically allocated to strengthen the team, processes, and presence of the incubator. According to Ranjan, the Haldiram’s growth story and the way in which they have built an empire from the ground-up is an ideal example that Vcats want to set for the enterprises that are a part of its set-up right now.
“Haldiram’s has already started shortlisting companies which they want to start helping,” Haldiram’s added in its statement.