In a move highlighting the power of impact investment, Aavishkaar Capital has recently led a funding round that injected Rs 41 crore into Go DESi, a startup from Bengaluru that packages and sells traditional Indian snacks.
Exploring Aavishkaar India Fund VI
This round of funding for Go DESi falls under the ambit of the $150 million Aavishkaar India Fund VI, a strategic fund designed to propel businesses that are set to make significant impacts in several key sectors. The fund’s primary focus is on enterprises involved in sustainable agriculture, healthcare, consumer goods, financial services, and environmental initiatives. By investing in these areas, Aavishkaar India Fund VI aims to foster sustainable development and address critical social, economic, and environmental challenges across India.
Aavishkaar India Fund VI is not just about financial investment; it’s about creating a broader impact. The fund seeks to catalyze growth in sectors that are essential for the improvement of quality of life and environmental sustainability. It supports innovations that promise not only commercial success but also the potential to scale solutions for greater societal benefits.
Through this approach, the fund contributes to the development of an ecosystem that encourages sustainable practices, enhances healthcare outcomes, provides inclusive financial services, and drives consumer access to quality goods. By doing so, Aavishkaar India Fund VI plays a pivotal role in advancing India’s agenda for sustainable development and inclusive growth.
The Funding Breakdown
This funding event marks the seventh investment by the Aavishkaar India Fund VI. Alongside Aavishkaar Capital, several previous investors, including Rukam Capital, Roots Ventures, and DSG Consumer, have also contributed, showing continued trust in Go DESi’s business and growth potential. The funds will be used to help Go DESi expand across new regions, add more products, and strengthen their overall business capacity.
Vinay Kothari and Raksha Kothari, who founded Go DESi in 2018, have successfully built a strong brand and distribution network. They’re tapping into India’s vast confectionery market, which is worth over $17 billion. This market is particularly ripe for growth, with about 90% still being unorganized and traditional.
Go DESi’s Plans and Potential
Vinay Kothari, the founder of Go DESi, discussed the significant opportunities lying in India’s fast-growing packaged food industry, which is currently expanding by 20-25% each year. The partnership with Aavishkaar Capital is set to enhance Go DESi’s product range, boost marketing efforts, and enable quick expansion across new regions.
“We are excited to welcome Go DESi into the Aavishkaar family and join their journey of transforming the confectionary landscape in India – while impacting the rural economy. The company has created a strong brand name and a robust distribution engine in a short time,” said Divya Gupta, a representative from Aavishkaar Capital.
Spotlight on Go DESi
Go DESi is more than just a food company; it’s a journey through India’s rich culinary heritage. Launched in 2016 by Vinay and his sister Raksha, the company has quickly made a name for itself with products like DESi POPz. These treats have become a hit and are now sold in over 15,000 stores nationwide.
Despite its relatively recent entrance into the market, Go DESi has already established a significant presence and an efficient distribution network, making it a noteworthy player in the industry.
The brand captured nationwide attention when it appeared on Shark Tank India Season 2. The founders, Vinay and Raksha Kothari, showcased their unique business model, which emphasizes celebrating traditional Indian flavors while supporting rural micro-enterprises. Their pitch resonated strongly with the Sharks, who were impressed by the company’s commitment to both cultural heritage and social impact.
This appearance not only helped boost Go DESi’s brand visibility but also highlighted their innovative approach to integrating regional culinary practices into a scalable business model, significantly enhancing their credibility and consumer appeal in the competitive market.
Recognition and Publicity
Go DESi gained considerable public attention when it was featured on Shark Tank India Season 2. The platform spotlighted their unique approach to celebrating regional flavors and supporting rural micro-enterprises. Vinay and Raksha Kothari’s presentation impressed the show’s investors, helping to elevate the brand’s profile and further boost its credibility.
Also read: Zivame Richa Kar’s Journey to Empower Women in India
Overview of the Indian Confectionery Market
The Indian confectionery market, a major part of the global sweets industry, is valued at more than $17 billion. This market can be broadly segmented into Western and Indian categories. While multinational corporations dominate the Western segment with their advanced branding and distribution, the Indian segment, predominantly unorganized and valued at approximately $10 billion, offers a diverse array of traditional and innovative sweets. This segment is dynamic, driven by local tastes and a strong entrepreneurial spirit.
With the latest funding from Aavishkaar Capital, Go DESi is well-positioned to expand its influence in the confectionery market while contributing positively to India’s rural economy. This move highlights the growing importance of impact investing in fostering economic growth and innovation in sustainable ways.