Bengaluru-based confectionary brand Go Desi Thursday said it has raised $4.9 million (Rs 41 crore) in a Series B funding round, led by impact investor Aavishkaar Capital. The round also saw participation from existing investors Rukam Capital, Roots Ventures and DSG Consumer.
This marks the seventh investment from Aavishkaar Capital’s sixth India-focused fund.
The startup will utilize this fund for business expansion geographically, expand its stock-keeping units and build and strengthen capacity.
Founded in 2018 by Raksha Kothari, Go Desi is a homegrown regional treats brand. Their most well-known product is the “DESi POPz” which along with all its other products is available online on all marketplaces and quick commerce platforms.
“The funding partnership with Aavishkaar Capital will help Go DESi strengthen its product portfolio, accelerate marketing, scale our geographic focus and expand our distribution reach,” said Vinay Kothari, co-founder, Go Desi.
Prior to the current funding round, the startup had raised Rs 39 crore across its previous funding rounds.
“The company has created a strong brand name and a robust distribution engine in a short time. Go DESi team has all the right ingredients to capture the confectionery market in India,” said Divya Gupta, investment director, Aavishkaar Capital, while commenting on their investment.
Go Desi joins a host of consumer companies that have raised funding from Aavishkar Capital. Most notably, Aavishakar had previously invested in the millet-based food brand Soulfull, which was later acquired by Tata Consumer Products, to expand its food portfolio in India.
Impact investor Aavishkaar Capital, which has backed agritech startup AgroStar and Ergos, fintech app Chqbook, logistics company GoBolt, and NBFC Financepeer, raised $150 million for its sixth India-focussed fund last year in November.
Aavishkaar Capital’s sixth investment vehicle counts British International Investment, Swiss Investment Fund for Emerging Markets, Sidbi-managed FoF and Self-Reliant India Fund as its limited partners.
The firm primarily invests in early-stage businesses and growth companies in India.
Aavishkaar also operates two international funds. One of them invests across Asia while the other one is an Africa-focused ESG vehicle. Overall, it manages assets north of $500 million.
