Yu Secures Rs 55 Crore in Series B Funding to Boost Distribution and Expand Product Portfolio
- ByStartupStory | October 23, 2024
Yu, an omni-channel consumer brand known for offering a range of instant food and beverage products using 100% natural ingredients, has successfully raised Rs 55 crore in its Series B funding round. The investment was led by prominent public market investor Ashish Kacholia and the Asian Paints Promoter Group, represented by Manish Choksi and Varun Vakil. As part of this funding round, Yu also facilitated an exit for some of its seed-stage investors, who reportedly gained over a 4x return on their initial investment.
The Series B funding arrives at a critical moment for Yu as the company aims to scale its distribution network and strengthen its food portfolio. Additionally, the brand plans to expand its recently launched beverage range, which includes 100% fruit juices made without concentrates or added sugar.
Expansion and Innovation in Natural Foods
Founded in 2021 by Bharat Bhalla and Varun Kapur, Yu started with instant cup noodles and pastas and has since grown its offerings to include ready-to-cook noodles, pastas, and natural beverages. The company emphasizes the use of 100% natural ingredients across all its products. In a relatively short time, Yu has gained significant market share in the cup noodles segment and emerged as a leader in hakka noodles across e-commerce and quick-commerce platforms.
Some of the brand’s standout products, such as its 100% Whole Wheat Noodles and 100% Coconut Water, have already achieved remarkable sales volumes, surpassing those of established competitors. Yu attributes this success to its commitment to providing healthier, all-natural alternatives without compromising on taste and affordability.
Pan-India and International Presence
Yu has built an extensive omni-channel distribution network, with a presence in over 7,500 physical stores across India. The brand is also available on leading quick-commerce platforms like Blinkit, Swiggy Instamart, and Zepto, as well as e-commerce channels such as Amazon, Flipkart Grocery, and Dmart Ready. Beyond India, Yu has expanded its footprint to South Africa, where its products are sold in more than 2,000 retail outlets.
In September 2024 alone, the company reported selling over 1 million units, demonstrating strong business momentum. Yu operates out of a 30,000 sq. ft. facility in Gurugram, which is UK FSSC 22000 and US-FDA certified, and is already working on opening its second facility. The company has also expanded its workforce to over 200 employees.
Looking Ahead: A New Era for Yu
Expressing their excitement about the new phase of growth, Yu’s founders, Bharat Bhalla and Varun Kapur, stated: “It is extremely motivating to have raised significant growth capital that too from highly eminent investors. We greatly appreciate their support. Version 2.0 for Yu is now officially underway with the launch of 100% fruit juices – our second product category after instant foods. From our current annualized revenue run rate of Rs 50 Crs, the Series B growth capital should allow us to grow revenues 3x over the next 2 years. This will include enhanced distribution penetration, new product launches and further category expansion. Using fundamental research and constant innovation, Yu would like to remain at the forefront of the ‘better for you’ consumer foods revolution in India and overseas.”
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