Bengaluru-based Samosa Singh on Friday said that it has raised $2.7 million (approximately ₹17 crore) in a series A funding round led by SheCapital, along with existing investors Fireside Ventures. Early-stage fund Equanimity Investments, Japan-based AET Fund, and the AL Trust also participated in the funding round.
The company will utilise the money to scale up its operations, increase its production capabilities, and expand across cities. It is also looking to launch a cloud kitchen model, which is a delivery-only kitchen format.
“Their [investors] backing and experience will allow us to expand our presence pan-India and increase our production capacity manifold,” said Shikhar Veer Singh, co-founder and CEO, Samosa Singh.
Founded in 2016 by Shikhar Veer Singh and Nidhi Singh, the food startup offers local snack items and beverages such as samosa, kachori, chat, tea, and sodas targeting India’s massive food market estimated to cross $540 billion by 2020.
“Samosa Singh was born from a simple realisation—in India, leisure time and snack foods are both inextricably linked to the country’s cultural fabric,” said Nidhi Singh, co-founder and COO, Samosa Singh.
The company claims to offer samosas that are 56% less in fat than usual samosas that are available in the local market. Some of its key items include kadhai paneer samosa, achaari murg samosa, and chocolate samosa.
“Building on technology, scientific research and key consumer insights without diluting the experience or quality for end users is what makes this brand a great bet,” said Anisha Singh, founding partner, SheCapital.
Samosa Singh currently operates in Bengaluru and Hyderabad with plans to expand to other cities across south India. Since its founding, it has partnered with brands such as INOX, PVR Cinemas, Café Coffee Day, and others.
“India is ready for the next leap in great consumer brands. Samosa Singh has taken a nostalgic Indian snack and created a buying/consuming experience that is in line with millennials’ habits,” said Vinay Singh, partner, Fireside Ventures.
In October last year, private equity firm CX Partners invested ₹260 crore in restaurant chain Dindigul Thalappakatti which is known for its biryani. The Tamil Nadu-based restaurant chain was valued at an estimated ₹600 crore at the time of funding. Biryani By Kilo, a delivery-focussed restaurant chain, raised ₹30 crore from venture capital firm IvyCap Ventures in June. Mumbai-based cloud kitchen startup Rebel Foods, which owns and operates brands such as Faasos, Behrouz Biryani, Oven Story, Firangi Bake, and Mandarin Oak last year raised $125 million (approximately ₹864 crore) reportedly at a valuation of about $500 million.
According to a 2019 report by CARE Ratings, quick service restaurants (QSR) and casual and fine dining restaurants account for about 75%-80% of the organised segment, followed by cafes, bakeries and pubs, clubs, bars, and lounges accounting for about 8%-10%, and institutional catering and kiosks with a 13%-15% share in the organised market.