Mid-sized consumer brands like Wingreens, Wow! Momo, Curefoods eye PE funding amid revival in investor interest

Synopsis Amidst a flourishing economy, numerous Indian consumer brands are on the hunt for capital, showcasing a notable uptick in fundraising efforts. As consumer spending sees a resurgence and deal-making heats up, private equity firms and venture funds are actively targeting these promising mid-sized names. Over half a dozen mid-sized consumer companies are in talks with private equity firms, venture funds or family offices, to raise fresh funds for expansion, buoyed by increased deal activity and positive consumer buying sentiment after two years of slowdown. Wingreens Farms, Curefoods, Chitale Bandhu, Baker's Dozen and Wow! Momo are among the firms in the process of fundraising to dilute minority equity of 10-15%, people aware of the matter said. "We're seeing a clear resurgence in investor interest across the Indian consumer space-particularly in mid-sized, founder-led brands that have built real customer loyalty, but need growth capital to scale distribution and marketing," said Siddharth Bafna, partner and head, corporate finance at accounting and consulting firm Lodha & Co. Private equity firms such as A91 Partners, Amicus Capital Partners, Xponentia Capital and Kedaara Capital are leading the funding in the mid-sized companies, according to executives at the firms. Arjun Srivastava, cofounder of Wingreen Farms, which makes herb-based dips and condiments and owns Raw Pressery juices, confirmed that the company has mandated JM Financial to raise primary capital of about ₹200 crore in the parent company. "Raw Pressery is a wholly-owned subsidiary of the company. The capital raised will be used to grow the Wingreens foods business as well as the Raw Pressery's juice and beverage business," he said. While negotiations on larger deals such as Balaji Wafers are stalled because of steep valuations, there is a rush among investors to buy into mid-sized brands, with investments ranging from ₹200-₹500 crore, as such brands have shown potential to challenge the dominance of category incumbents, executives said. Live Events "Firms are increasingly raising capital to strengthen branding and drive growth, as performance marketing remains essential for scaling the online segment," said Mahesh Parasuraman, founder of Amicus Capital Partners, an India-dedicated early growth capital fund. "In contrast, offline expansion typically operates as a loss leader in its early phase-requiring promotional schemes, discounts, distributor commissions, and credit support. As a result, this channel demands higher working capital in the short term until volumes and scale improve profitability," he added. P-Tal, a kitchenware start-up, raised ₹25 crore led by VC Grid and Rainmatter last month, while jewellery brand Palmonas had raised ₹55 crore in a Series A funding round led by Vertex Ventures SEAI in August. IPO-bound firm cloud kitchen startup Curefoods too raised ₹160 crore from Flipkart cofounder Binny Bansal-backed investment fund 3StateVentures. In March this year, Haldiram Snacks Food had sold close to 10% stake to three global investors Alpha Wave Global, International Holding Company (IHC) and Temasek, valuing the company at around $10 billion (₹85,000 crore), making this the largest deal in the consumer space. And in August, ChrysCapital had acquired bakery chain Theobroma for over ₹2,000 crore. "Large transactions, like the Haldiram deal, act as strong confidence boosters," Bafna of Lodha & Co said. "They reaffirm that scaled consumer brands in India can command world-class valuations, which naturally lifts sentiment and reference benchmarks for smaller peers," he added. Experts, however, noted that profitability is a key focus area for PE investors. "Brands lacking clear visibility on Ebitda break-even are finding it difficult to attract PE funding," Parasuraman of Amicus Capital said. Venture capital, however, continues to flow into early-stage or high-growth businesses. Despite these shifts, the long runway for consumption growth in India continues to attract strong investor interest across categories, he added. Amicus Capital Partners, founded by PE professionals Parasuraman and Sunil Theckath Vasudevan, made investments in personal care brand mCaffeine and kitchenware and appliance brand Wonderchef. The firm currently manages $302 million across two funds. Another mid-market private equity fund, Xponentia Capital made investments in Barbeque-Nation Hospitality through a pre-IPO round, while its other consumer deals include R for Rabbit baby products, and D2C retailer The Souled Store. 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