Ikayu Foodlabs Pvt Ltd, which operates the instant food brand Yu, has raised Rs 20 crore (around $2.4 million) in a Series A funding round led by independent investor and stock market trader Ashish Kacholia.

The round, a mix of equity and venture debt, also saw participation from existing investors, Asian Paints’ promoter group Manish Choksi and Varun Vakil.

As per the startup, the raised funds will be used to strengthen its domestic offline and online distribution channels and expand reach in the US, West Asia and African markets.

Yu | Instant Food Brand

Founded by Bharat Bhalla and Varun Kapur in 2020, Yu is a Gurugram-based foodtech brand that provides a range of instant and ready-to-make bowls with zero preservatives. 

The Gurugram-based food brand claims to have been logging over 200% quarter-over-quarter growth. It targets the sale of one million bowls by next year.

Speaking about the development, the founders of Yu, in a joint statement, said,

“The next 12 months will also see us aggressively expanding our presence in global markets; additionally, it provides us the capacity and resources to penetrate alternate channels like airlines, railways, hospitals, universities and defense services where our 100% natural meal bowls are truly disrupting the segment.”

Following an omnichannel approach, Yu has penetrated multiple distribution channels, including offline stores (3,000+ stores), online (e-Com and Q-Com servicing pan India), over 100 institutional campuses, and exports (South Africa and the US) in a span of 12 months.

With its signature Butter Chicken Pasta and Chilli Chicken Noodles, the Gurugram-based food brand recently expanded into the non-vegetarian category. Over the next 12 months, Yu is looking to introduce 10 more unique products to complement its existing product portfolio.

As per a report by Think Ag, an ag-food-fintech platform, investors pumped $798.6 million into India’s food innovation technology sector between 2015 and 2021.  

Follow us and connect with us on Instagram, Facebook, Twitter, and LinkedIn.

Note: If you are a budding entrepreneur and require assistance in new company registration or other startup related legal services, contact us.