Luxury Sweets Brand Khoya Mithai Raises Over Rs 6 Cr In Pre Seed Round
Delhi-based Lone Star Hospitality, which owns the Indian luxury sweets brand Khoya Mithai, has received Rs 6.15 million in a pre-seed round.
The funding round was led by chef Ritu Dalmia’s Riga Foods, a family office portfolio firm of Max Group chairman Analjit Singh. Several investors, such as Priya Paul, also participated in the funding round.
As per the startup, the freshly raised funds will be used to develop new goods and expand into new categories of connected consumer products. The firm also plans to expand its retail footprint in additional Indian metropolises and enter foreign markets.
Khoya Mithai | Luxury Sweets Brand
Founded by Sid Mathur in 2016, Khoya Mithai develops and produces premium traditional mithai and luxury confectionery products and sells them directly to customers. Luxury mithais, a relatively new concept introduced about five years ago, can be priced at Rs 20,000-30,000 per kilogram.
Speaking about the development, Sid Mathur, Founder of Khoya Mithai, said,
“Khoya was a passion project, and we took our time to build it. We dived deep into the history, travelled, searched for ingredients, worked hard on recipe development, and spent months on packaging. The product spoke for itself, and Khoya has grown organically through only reinvestment of profits. With this capital raise, we will be able to take the brand to a new level, expanding our kitchens, teams & distribution both in India as well as internationally.”
As per Sid, the firm was launched with a vision to make mithai ‘exciting again’, using natural ingredients, and each piece is carefully handcrafted, tastefully arranged and beautifully packed. The company claims it has clients like Louis Vuitton, Cartier, Good Earth, Lexus, and others.
Competing with players like Gur Chini, Arq Mithai, Meethi, Bombay Sweet Shop and others, Khoya Mithai sells its products online and in some stores at retail spaces and hotels.
Commenting on the development, Co-founder of Riga Foods, Dalmia, said,
“For me, this brand has always been the benchmark of luxury mithai, and we are thrilled to be part of their journey. With obvious synergies of catering, kitchens and restaurants, we have a head start on this relationship and can’t wait to see this company grow.”
Industry experts predict that the organized Indian sweets and the high-end gifting market will reach a value of approximately Rs 15,000 crore by 2028.
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