Sequoia Capital to lead next round of funding for Wingreens Farms

2024-04-24 05:02:07 Lifestyle

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Sequoia Capital-backed Wingreens Farms is planning to raise $8 million as part of Series A round to expand its food portfolio and markets.
Having raised a seed capital of $2 million from Sequoia Capital last year, the five-year-old food start-up, which started the fresh-dips category in India, expects to diversify into pasta sauces, international pickles and beverages, with plans to expand its presence and distribution to new markets such as Goa, Kolkata and Hyderabad.
Anju Srivastava, founder and Managing Director, Wingreens Farms, said: ?Sequoia Capital will lead our next round (Series A) where we want to go in for a fund raising of $7-8 million. Apart from expansion and new products, we also need the funds for marketing and innovation as we want to grow and become a health-oriented company.?
With a turnover of 30 crore, the Gurgaon-based company is yet to break even.
It has been investing in building its distribution network through its warehouses and cold chain in markets such as Delhi, Mumbai and Bengaluru.

It currently reaches out to 600 stores and is also tapping into general trade outlets.

New players
With an average selling price of 200, Wingreen fresh dips has bagged 95 per cent of the category, the company claims. However, start-up brands such as Chef?s Basket are also entering the space, making fresh dips almost a ₹50-crore category.

?A few local and in-store brands are into the fresh-dips category today, but they comprise less than 10 per cent of the category. We are going to be the first national brand and have 90 per cent share in the category,? she added.

With a central kitchen in Gurgaon, Wingreens has only women workers, and has developed backward integration with farmers across North India.

It makes fresh dips with flavours such as garlic, peri peri, chipotle and rosemary hummus, and expects to move into new categories such as baked chips, salsa and pasta sauces.

Farm-to-retail
Positioning itself as a farm-to-retail company, Wingreens is already engaging with farmers on a rental model to grow herbs for its products.

?We already have farm experience since we have grown tomatoes for retailers such as Wal-Mart in the past. We have rented almost 4 acres of land from farmers, and together we grow our herbs. For farm-based technology, we have tied up with companies such as Jain Irrigation.?