Lal Sweets looks to raise $40 mn from PE investors at $175 mn valuation

The company, which sells sweets, cookies and savories, has received a word expanse from the backstage equity limb of Motilal Oswal Group, 1 of the idiosyncratic cited supra said.

“The money rise is simply a premix of superior and secondary capital, with the promoters selling immoderate stake," the idiosyncratic added.

The institution has appointed concern slope Veda Corporate Advisors to assistance with the fundraise. This is the archetypal clip the institution is looking to rise outer superior since its inception successful 2010.

“Motilal Oswal PE is doing owed diligence," the 2nd idiosyncratic cited supra said.

While Veda and Motilal Oswal did not respond to Mint’s requests for a comment, Lal Sweets’ managing manager Prateek Athwani declined to remark connected the developments.

Founded by Athwani, the Bengaluru-based institution has vulnerability crossed wide trade, modern trade, online marketplace, exclusive airdrome outlets and the export market. Lal Sweets is known for its ‘signature products’ specified arsenic Mysore Pak, Besan Laddoo, Kaju Katli and Dharwad Peda, arsenic per the company’s authoritative website.

According to the 3rd idiosyncratic cited above, the superior volition assistance institution grow into newer merchandise categories similar wellness snacking options, instant mixes and frozen acceptable to devour options. “While Lal Sweets is presently a profitable company, it is focused connected improving its revenues successful the near-term," the 3rd idiosyncratic said.

Spreading wings

Lal Sweets is salient successful the confederate portion of India isolated from Delhi NCR successful the north. Besides doubling down connected its existing geographies, it is looking to deepen its absorption successful bluish India and cater to planetary demand. 

Lal Sweets ships its products to countries with ample Indian colonisation specified arsenic the US, Singapore and West Asia.

In FY23, Lal Sweets’ full gross grew astir 40% to ₹85 crores from a twelvemonth earlier, according to its latest filings sourced from Tofler. It posted an yearly nett of ₹14 crore from a nonaccomplishment of ₹2 crores successful FY22.

Also Read: Urban people reluctant to springiness up sweets, says survey

The broader snacking manufacture has been witnessing sustained momentum successful caller times with respective new-age startups snapping up funds from investors. Some caller examples see Fireside Ventures’ $1.5 cardinal concern successful Chennai-based snacking marque Sweet Karam Coffee successful October past year, Farmley’s $6.7 cardinal fund-raise from a radical of investors led by BC Jindal Group successful December 2023, direct-to-consumer snacking marque Adukale’s $1.3 cardinal led by Force Ventures successful April this year.

Mint also reported successful May that backstage equity firms Blackstone, Temasek Holdings and Bain Capital were evaluating a controlling involvement successful sweets-and-savouries shaper Haldiram Snacks Food Pvt. The investors were looking to bargain astatine slightest 51% involvement successful the institution astatine a valuation of $8-10 billion, radical successful the cognize said.