Natch Secures Rs 3 Crore in Seed Funding to Elevate Premium Snacking

• ByStartupStory     |    November 9, 2023

Natch, a snacking startup, has successfully raised Rs 3 crore in a seed funding round, led by Artha Venture Fund (AVF), in collaboration with the DSP Group’s family office, a prominent financial services company. This funding will be instrumental in Natch’s expansion efforts, with a focus on enhancing omnichannel presence, optimizing distribution networks, intensifying marketing initiatives, and fostering innovative product development.

Natch, established in 2017, is renowned for its commitment to offering natural, gluten-free, and vegan snacks free from artificial flavors, preservatives, and trans fats. The company has been on a rapid growth trajectory, and this funding will help them solidify their position as a leader in premium snacking within the Indian market.

Matthew Taff, Co-founder of Natch, expressed his enthusiasm for the partnership, stating, “We are thrilled to partner with Artha Venture Fund and DSP Family Office, marking an important milestone for Natch. Their support is crucial as we aim to set a new standard in premium snacking in India. With this investment, we are well-positioned to broaden our reach, enhance our production capabilities, and introduce innovative products to our customers worldwide.”

Natch has established a strong presence in both retail stores and e-commerce channels, experiencing a remarkable 300% surge in revenue over the past 18 months, coupled with a 30% growth in customer-facing touchpoints. E-commerce contributes significantly, accounting for 15% of the startup’s total sales.

Looking ahead, Natch plans to extend its footprint in metropolitan areas and tier-1 cities across India while deepening its presence in the quick commerce sector.

Anirudh A. Damani, Managing Partner at Artha Venture Fund, emphasized the growing shift towards healthier snacking options, noting, “The global snacking industry is undergoing a significant transformation, with a noticeable shift towards healthier options. Natch has successfully captured a niche in this evolving market with its commitment to quality and understanding consumer preferences.”

Artha Venture Fund (AVF) is a prominent early-stage micro VC firm with a corpus of Rs 225 crores, focusing primarily on B2B SaaS and D2C segments. The fund’s portfolio includes 31 investments, including well-known startups such as AgniKul, LenDenClub, Everest Fleet, and Daalchini.

According to Statista, the Indian snacks market was valued at $66.92 billion in 2023, with an anticipated annual growth rate of 9.01% CAGR until 2028. The market volume is projected to reach 19.02 billion kg by 2028, with an expected growth rate of 6.6% in 2024.

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