Adukale Secures Rs 11 Crore in Latest Funding Round to Boost Offline Presence

• ByStartupStory     |    April 24, 2024

Direct-to-consumer snacks and instant foods brand Adukale has successfully raised Rs 11 crore in a new funding round spearheaded by Force Ventures, focusing on expanding its offline market presence. The company, which has been a significant player in the snacks industry since 2009, plans to use the funds to enhance its visibility and accessibility through brick-and-mortar stores.

Vinay Gopinath, Chief Growth Officer at Adukale, shared in a statement that the investment will predominantly support the company’s expansion into the offline retail space. Adukale currently operates over 20 exclusive stores and has a presence in more than 1,200 supermarkets and retail outlets. “The company is looking to open another 12 stores in the next 14 months, and expand to 2,500 supermarkets and retail stores in that time period,” Gopinath explained.

With total funds raised exceeding Rs 16 crore, Adukale continues to strengthen its market position. The recent funding round also enjoyed participation from notable investors such as Anya Ventures, managed by Anvitha Prashanth, Subrata Mitra of Accel, and Radhika Pandit, spouse of renowned Kannada actor Yash.

Adukale’s chief executive Bharat Kaushik emphasized the strategic balance between online and offline sales channels. While 80% of the company’s sales currently come from offline channels, Adukale is also enhancing its online footprint on platforms such as BigBasket, Swiggy Instamart, and Zepto. Kaushik noted, “Even though quick commerce provides great growth and lower CACs (customer acquisition cost), it also has a lot of costs like commissions… For long-term profitability, having a healthy mix of offline and online presence will be essential.”

The company is not just expanding its reach but also eyeing significant revenue growth, with a monthly recurring revenue of Rs 2 crore. “The firm will aim to grow that by 2.5 times in FY25,” Gopinath stated.

Adukale has also indicated profitability at a contribution margin level and aims to achieve earnings before interest, taxes, depreciation, and amortisation (EBITDA) profitability within the next 12-18 months. This ambitious growth strategy underscores Adukale’s commitment to becoming a leading name in the Indian snack market while maintaining a sustainable and profitable business model.

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