A91 invests $16m in India spices maker

This is the first capital raising for Pushp, which was established in 1974. A91 is investing via its debut fund, which closed at $351 million last year. Part of the strategy is sourcing deals by cold-calling bootstrapped companies that have no prior institutional funding. The venture capital firm has put a strong emphasis on targeting companies that have gone unnoticed. 

A91 is expected to take a 25% stake in Pushp. Proceeds from the investment will be used to expand the distribution network and sales capacity. The broader plan is to develop the company from a regional leader in the state of Madhya Pradesh, which currently accounts for 70% of sales, to a significant nationwide operator. Pushp claims to have a substantial presence in more than 15 states.

Pushp markets a range of branded spices, including coriander, turmeric, chili, cumin, and ginger, as well as blended seasoning packages, drink mixes, and special flavoring products. The company says its manufacturing methods combine "cutting-edge technology and traditional pounding methods" at a 215,000-square-foot production facility with an output capacity of 200 metric tons a day. Revenue for the 2020 financial year came to INR1.6 billion.

A91 was founded 2018 by three former managing directors at Sequoia Capital India, Gautam Mago, Abhay Pandey, and V.T. Bharadwaj. Previous investments in the food space include Hector Beverages, a drink maker also known as Paper Boat, where Bharadwaj served as a director while at Sequoia. A91 has participated in three rounds for the company, together worth more than $35 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Consumer
• Expansion
• India
• A91 Partners
• manufacturing