Forbidden Foods Pvt Ltd. (Round Closed)
Brand: BRB Chips
Official Website
Reports and Documents
₹ 6Cr.
Total Round Size
CCPS
Mode
₹ 50Lakhs – 1Cr.
Open for SAN Angels
₹ 60Cr.
Valuation (pre-money)
About the Opportunity
- Opportunity to invest in a disruptive, new-age, better-for-you snacks venture that is democratising the healthy snacking market in India with a fun and quirky brand called BRB targeted to the Indian Gen-Z.
- The company’s first range of products is BRB Popped Chips that are an absolute hit with consumers.
- BRB Popped Chips offer the golden trifecta of snacking – superb taste, significantly healthier, and affordably priced. The company is pioneering the popped chips category in India; these are chips that are neither fried, nor baked, but made using an innovative new cooking technology called popping. BRB has the widest range of popped chips in India and perhaps even globally with potato-, corn-, and rice-based variants in multiple flavours.
- Overwhelmingly positive consumer feedback on the products
- Strong omni-channel distribution presence across quick-commerce, e-commerce marketplaces, retail stores, vending machines, HORECA and other institutional customers, corporate offices, school/ college canteens etc.
- Company has a strong pipeline of new products beyond popped chips in the better-for-you snacking space that will be launched at a regular cadence, with the next range slated for market introduction by the end of this year.
- Healthy snacking market in India is forecast to grow at a 25%+ CAGR reaching ~US$ 10bn by 2026 (source: Avendus Investment Bank report). Multiple winning brands will emerge in this space.
- Company has grown strongly, achieving a full year FY ’23 net revenue of approx. INR 7.5 Cr, a growth of 2.6x over the previous year, indicating a strong PMF has been achieved.
Team
- Founding team consists of seasoned entrepreneurs and professionals who bring complementary skills and experience to the table and are well suited to deliver on the company’s vision.
- CEO is ex co-founder of BIRA 91, a pioneering and iconic consumer startup in the country and brings a strong brand-building and sales & distribution experience to the company.
- COO has a solid operations, supply chain, and new product development background, having worked at oil & gas services major Schlumberger for over 14 years.
- Both founders have a B. Tech. from IIT Bombay, where they met and forged a strong friendship.
Business Model
- B2B2C: Sale of products to B2B accounts in various different channels, including:
- Quick-commerce platforms such as Zepto, Blinkit, Swiggy Instamart
- E-commerce marketplaces such as Amazon, Bigbasket etc.
- Retail stores (Modern Trade and premium General Trade)
- Vending machines operators such as Vendiman, Daalchini etc.
- HORECA alliances with QSRs and café chains such as Costa Coffee and Burger Singh Travel retail, corporate offices, school/ college canteens, and other institutional customers
- Sales is done either directly or through distributors appointed in different cities.
- B2C: Sale of products directly to the end consumers through the company’s D2C website and online marketplaces such as Amazon.
Current Business / Market Opportunities / Traction
- FY ’23 net revenue (excluding all downstream trade margins/ commissions and excluding GST) of INR 7.5 Cr, up 2.6x from INR 2.9 Cr in FY ’22, which was up 2.8x from INR 1.1 Cr in FY ’21.
- 40%+ compounded revenue growth quarterly; 65% compounded growth quarterly in quick-commerce and 60% in vending machines.
- Peak monthly run rate achieved of around INR 1 Cr or an ARR of ~INR 12 Cr. Around 3 Lakh packs sold monthly.
- Presence in 3000+ retail stores across 15 cities; 2000+ vending machines in 8 cities; 200+ QSR/ café outlets; 25 premium travel retail stores at 12 airports; all major digital platforms; And several other institutional accounts.
Previous Rounds Details
- Total funding raised of ~INR 22 crore in 3 rounds
- Last round in Jul 2022, led by Duane Park Ventures. Other investors include Mumbai Angels, Globevestor, Secocha Ventures, First Cheque VC, and individual angel investors including Aman Gupta (founder Boat) and Ghazal Alagh (founder Mamaearth).
Deal Summary
- Total Round Size: INR 6 Cr
- Open for SAN Angels: INR 50L – 1 Cr
- Minimum Ticket Size: Individually to be on the cap table – minimum amount of Rs. 10 Lacs in INR and USD equivalent. For investments lower than that (min ticket size of Rs. 2 Lacs), it will be through our SAN Platform.
- Valuation: 60 Cr (pre-money)
- Mode (CCPS / Equity): CCPS
- Details of commitment received for this round: INR 2 Cr from existing investors and new angels