Lal Sweets looks to raise $40 mn from PE investors at $175 mn valuation
Mint’s requests for a comment, Lal Sweets’ managing director Prateek Athwani declined to comment on the developments. Founded by Athwani, the Bengaluru-based company has exposure across general trade, modern trade, online marketplace, exclusive airport outlets and the export market. Lal Sweets is known for its ‘signature products’ such as Mysore Pak, Besan Laddoo, Kaju Katli and Dharwad Peda, as per the company’s official website.
According to the third person cited above, the capital will help company expand into newer product categories like health snacking options, instant mixes and frozen ready to eat options. “While Lal Sweets is currently a profitable company, it is focused on improving its revenues in the near-term," the third person said. Lal Sweets is prominent in the southern part of India apart from Delhi NCR in the north.
Besides doubling down on its existing geographies, it is looking to deepen its focus in northern India and cater to international demand. Lal Sweets ships its products to countries with large Indian population such as the US, Singapore and West Asia. In FY23, Lal Sweets’ total revenue grew nearly 40% to ₹85 crores from a year earlier, according to its latest filings sourced from Tofler.
It posted an annual profit of ₹14 crore from a loss of ₹2 crores in FY22. The broader snacking industry has been witnessing sustained momentum in recent times with several new-age startups snapping up funds from investors. Some recent examples include Fireside Ventures’ $1.5 million investment in Chennai-based snacking brand Sweet Karam Coffee in October last year, Farmley’s $6.7 million fund-raise from a group of investors led by BC Jindal Group in December 2023, direct-to-consumer snacking brand Adukale’s
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