Pipal Tree Beverages raise capital from ITI Growth Opportunities Fund
New age FMCG startup Pipal Tree Beverages has raised an undisclosed amount from venture capital firm ITI Growth Opportunities Fund. The fund will be deployed for retail expansion across key markets in India as well to have an online presence for pan India reach.
Last year, Investment Trust of India (ITI) group had launched an early-stage venture capital fund called ITI Growth Opportunities venture fund. Pipal Tree Beverages will be its fourth investment and second within the FMCG sector after recently backing a snack making startup Evolve Snacks.
Sudhir Valia-backed ITI Group is a financial services conglomerate. Valia has been a director on the board of Sun Pharmaceutical Industries Ltd since 1993 and is also the brother-in-law of Dilip Shanghvi, managing director of Sun Pharmaceuticals Ltd.
“Consumer trend is moving towards convenient and healthy food choices, unfortunately, there are not enough options available in the market especially when it comes to functional beverages. We expect Pipal Tree Beverages to fill that gap, as they are offering a fusion of health and taste to the Indian urban consumers” said Mohit Gulati, CIO & Managing Partner from ITI Growth Opportunities Fund.
Founded by Satish Negi and Jasmeet Khanna in 2018, Pipal Tree Beverages started with manufacturing and marketing of dairy-based functional beverages. The company’s first flagship product was launched last year under the brand name BREKKIE – Breakfast Shake.
Functional beverages mean healthy, ready to drink that is expected to enhance the body performance for day-to-day activities. It is mainly consumed by people who are health conscious but have a hectic or busy schedule throughout the day.
“People who want a blend of convenience & health is our target audience,” said Satish Negi, founder & director, Pipal Tree Beverages.
The company is currently present in Mumbai and Pune with plans to expand to other key markets like Delhi, Bangalore, Chennai, and Hyderabad. It also plans to expand via online marketplaces for a pan India reach.
“Our products are going to be listed soon with a modern retail chain like Godrej Nature Basket, Food Hall, Wellness forever & Big Basket” adds Negi.
According to reports by Euromonitor, the overall beverages market in India is pegged at Rs 43,034 crore, and is believed to touch Rs 130,000 crore by 2030. Of this, the health drink market is Rs 10,680 crore at present and is expected to touch Rs 15,067 crore by 2023
Source: ET Tech