Yu Secures ₹20 Crore Funding to Expand Global Presence and Enhance Manufacturing Capacity
- ByStartupStory | February 12, 2024
Instant food brand Yu has successfully raised ₹20 crore in a follow-on Series A round of funding, following its previous fundraise in November 2022. The funding was led by renowned public market investor Ashish Kacholia and the Asian Paints Promoter Group, featuring key figures like Manish Choksi and Varun Vakil.
In a statement, the founders, Bharat Bhalla and Varun Kapur, expressed their enthusiasm: “It is extremely motivating to see our existing, highly eminent investors double down on us. It is extremely heartening to see a young Make in India brand successfully selling its products in global markets like South Africa, Middle East, and Australia.”
The fresh capital infusion will propel Yu’s expansion plans, focusing on scaling up manufacturing capacity and diversifying into multiple product categories and segments. The brand is determined to consolidate its presence and establish a nationwide distribution network within the next 12 months.
Yu has set its sights on South Africa, where it has rapidly established approximately 2,000 stores. The brand achieved a remarkable 200% quarter-over-quarter (QoQ) growth, with sales reaching 1.5 million units in the quarter ending December 2023.
The founders revealed their strategic goals, stating, “The funds raised will allow us to augment our manufacturing capacity and grow our distribution in India and globally.” Yu aims to solidify its position in various distribution channels, including over 6,500 offline stores, e-commerce, and q-commerce across India. The brand has also penetrated institutional segments and exports.
Notable investors in Yu include Indian cricketer Hardik Pandya, boAt Founder Sameer Mehta, Partner in True North Private Equity Srikrishna Dwaram, PAG Private Equity’s Nikhil Srivastava, and the Department for Promotion of Industry and Internal Trade’s (DPIITs) Start-Up India Seed Fund.
The brand, founded in 2021, began with instant bowls and has expanded its product range to included ready-to-cook noodles and pastas, as well as natural beverages such as coconut water. Yu’s mission is to offer packaged foods “as close as possible to freshly prepared foods” using 100% natural ingredients. With a robust growth trajectory and global expansion plans, Yu is set to make waves in the instant food industry.
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