Snack brand Farmley raises $40 million in series C funding from L Catterton

The dried fruits and nuts segment of India’s healthy snacking market is expected to cross $8.5 billion by 2031.

Farmley has raised $40 million in series C funding led by L Catterton, a global consumer-focused investment firm, the  Noida-based healthy snacking brand said on May 12. Existing shareholders such as DSG Consumer Partners also participated in the fundraise.

The company will use the funds to scale its operations in the rapidly growing dried fruits and nuts segment of the country’s healthy snacking market.

Moneycontrol was the first to report that the dry fruits company was in talks to raise $40 million from L Catterton, as younger Indian consumers move towards the consumption of healthy snacks, which is driving up demand for dry fruits and related products.

The dried fruits and nuts segment of the healthy snacking market is expected to expand by around 14 percent annually over the next six years to cross $8.5 billion by 2031, the industry estimates.

Consumers are also increasingly opting for branded snacks that offer consistent quality via organised sales channels with better hygiene standards than unorganised ones, just like they have in other packaged food categories, the company said in a statement.

Founded in 2017 by Akash Sharma and Abhishek Agarwal, Farmley’s claims its revenue has risen by approximately 55 percent annually over the past two years to reach around Rs 370 crore in FY25, and is now profitable.

“We are thrilled to partner with L Catterton as its differentiated combination of global and local insights into our industry, as well as proven operating capabilities will be instrumental as we continue revolutionizing the healthy snacking landscape in India,” the founders said in a joint statement.

“Our roadmap includes penetrating untapped regional markets, developing cutting-edge product formulations that blend nutrition with exceptional taste, and leveraging advanced food technology to create snacks that truly nourish both the body and the palate,” the added.

According to L Catterton partner and head of India Anjana Sasidharan, Farmley has been able to capitalise on long-term consumer trends with its better-for-you positioning and high-quality products which resonate with customers.

“Its robust dried fruit and nut sourcing capabilities, prolific new product development engine, and strategic partner status across key sales channels have been vital drivers of the company’s growth in its category,” she added.

L’Catterton in India has backed Pepe Jeans, pet food company Drools, beauty and personal care brand Sugar, among others. It is increasing focus on India, the world's third-largest startup ecosystem, and recently formed a new investment vehicle in partnership with Sanjiv Mehta, former chairman/CEO and managing director of Hindustan Unilever Limited (HUL), to increase exposure in the country.