Wingreens Farms is a known name in the area of dips and sauces maker. The startup has expanded its operations with the Raw Pressery acquisition. Raw Pressery is the first startup that initiated fresh cold-pressed juices.
Acquisition Deal Between Wingreens Farms and Raw Pressery
The deal between Raw Pressery and Wingreens will help the latter to grow in the beverage market. As per the authentic sources. Wingreens paid Rs 100-110 crore to seal the deal.
Surprisingly, the deal amount is very less compare to the Pressery valuation in 2018. In that year, Raw Pressery has valued at around Rs 500 crore. It has raised a total of Rs 150 crore in different funding rounds.
Sequoia Capital, Saama Capital, DSG Consumer Partners, and Alteria Capital are the main investors in Raw Pressery. Sequoia Capital is a common investor between Wingreens and Pressery.
Founded in 2014, Raw Pressery is running under heavy losses. With the deal, Raw Pressery was trying to bring profits to the operations from last year. Wingreens hopes to change losses to profits.
Sometimes, interesting categories and the right products are also not good enough to run the company. Raw Pressery is a classical example of the previous statement. The company gave a choice of natural juices instead of chemical packed juices.
An email was sent to the major investor Sequoia, founders of Wingreens and Pressery, but nobody talked related to the current deal.
Why Raw Pressery is Under Losses?
Demand for healthier drinks is increasing exponentially in urban areas. Companies like Raw Pressery, Epigamia, HappyBooch are in demand because of the natural products.
Then, why Raw Pressery is not getting a profit? The main reason for losses is the high price tag of these companies’ products. Beverages of Pressery is having limited shelf lives compare to the preservative packed unhealthy drinks. Above all, chillers are compulsory for Raw Pressery products else it will expire.
“In the consumer goods segment, anything expensive and niche is very difficult to scale. Even bigger companies such as Dabur or ITC have not attempted such a premium sub-segment within juices and when they do, it will be mostly through e-commerce to enable manufacturing on the basis of real demand,” said Abneesh Roy, senior vice president at Edelweiss Securities.
Soup, nut milk, smoothies, coconut water are the main beverages of Raw Pressery. On the other hand, Wingreens is also popular for its direct farms to market products. Cookies, Pasta, Dips, Sauces, herbs, healthy chips are the main products of Wingreens.
Founded in 2011, Wingreens Farms helps farmers adopt sustainable practices such as the use of microbial cultures, drip irrigation, inter-cropping, and compost fertilization – leading to us saving as much as 2,50,000 liters of water per acre per annum, and increasing the farmer’s income by 1000% and more (from Rs.20,000/- per annum to over Rs.3,00,000/- per annum).
Wingreens is involving the farmers in the first level of processing for its products. It provides extra income to the family members of farmers. The startup also helped in removing the middlemen for crop purchases.
