Kaatil Raises Seed Funding, Plans Expansion in India and International Markets
- ByStartupStory | September 17, 2024
Kaatil, an Indian-chilli-focused hot condiments brand under Smerc Food & Beverages, has raised an undisclosed amount in seed funding. The funding round was led by Mumbai-based Prajay Advisors, with participation from Shivaan Ghai and Romil Ratra of Mumbai’s Graviss Group. This funding news follows Kaatil’s recent win of the prestigious Great Taste Award 2024 from the Guild of Fine Foods, U.K.
Kaatil, known for its range of hot sauces, hot ketchups, and chilli oils made exclusively with Indian chillies, plans to use the new capital to expand its product lines and distribution channels. The company aims to strengthen its presence both nationally and internationally through e-commerce marketplaces, quick commerce, and offline retail outlets. Additionally, Kaatil plans to establish a dedicated business-to-business (B2B) supply arm to cater to restaurants, hotels, and cafés.
Sagar Merchant, founder of Kaatil, expressed his excitement about the investment: “We are very excited to have this investment from Prajay Advisors & other strategic investors, who have demonstrated a very sharp acumen in understanding the food and beverage space. Our observation from the last five years indicates that India’s food consumption behaviour has drastically evolved and people are now willing to experiment with new brands and products than ever before. Keeping in mind the palette of Indian consumers, we have curated the most flavourful hot condiments with different levels of heat, all made using Indian chillies. Our aim hereon is to reach consumers, who possess a strong liking for hot condiments, not only in India but also globally.”
Founded in 2021 and headquartered in Mumbai, Kaatil was created to bridge the gap in India’s hot condiments market by showcasing the diverse variety of Indian chillies. The company recently became the first Indian chilli-focused hot sauce brand to win the Great Taste Award 2024, further cementing its position in the global market.
Arjun Panwar, Co-Founder of Kaatil, added: “We are grateful to have raised this capital, which we plan to utilize for solidifying our presence and distribution, and expanding our product suite. Our goal is to also educate consumers on how these products fit into their everyday meals and can go well with all cuisines. We want to be their go-to partner for all the meals and in all their food choices. We also believe, our products can help uncover the story of Indian chillies to the world, which, by far, is lesser known to the people, despite being one of the biggest producers of distinct chillies.”
Kaatil currently follows an omnichannel strategy and is available on its direct-to-consumer (D2C) site, as well as on Amazon, Big Basket, and Nature’s Basket. In offline retail, the brand’s products are available across Mumbai, Pune, and Hyderabad. Internationally, Kaatil’s products are available on Amazon USA and in physical stores in Canada and New Zealand.
The Indian seasoning, dressing, and condiments market is experiencing rapid growth, with industry estimates projecting it to reach ₹19,000 crore by FY25. The sauces and condiments category is also set to grow to ₹3,000 crore, with an impressive growth rate of 23.10% by FY25. This surge in demand is driven by a new generation of home chefs, party hosts, caterers, and consumers looking for quick meal solutions.
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