Wingreens Farms plans ₹200 crore fundraise as turnaround gains traction

The move comes as the packaged food and beverage maker executes a turnaround plan focused on improving unit economics and greatly reducing losses.

“The company is working aggressively to reduce costs and grow sustainably. ₹150-200 crore to further expand their brand,” said one of the people cited above.

“The current financial picture will show that some of these actions are bearing fruit, as the company is expected to break even at the net profit level,” the second person said. The person added that the round will be entirely primary, with existing investors likely to hold their positions until a potential IPO in 2-3 years.

Wingreens confirmed the development Mint.

“Proceeds will be used for organic and inorganic growth. The business has been Ebitda profitable for the last 3-4 quarters and we are growing profitably this year with revenue growth of around 30% over last year. We will be PAT positive in the current fiscal,” Arjun Srivastava, founder and director of Wingreens, said in an emailed statement.

He added that the company is working towards an IPO between the end of FY28 and the first half of FY29.

Brand portfolio

Founded in 2011 by husband and wife duo Arjun and Anju Srivastava, Wingreens focuses on minimally processed products made using high-quality, sustainably sourced ingredients. Its portfolio includes sauces and spreads, dressings and mayonnaise, snacks, breakfast cereals, wheat pasta, fruit juices, drinks and milkshakes.

Over the years, the company has raised around $60 million and is backed by investors like Anicut Capital and Omidyar Network India. It operates four brands: Raw Pressery (juice brand), Wingreens Farms, Wingreens Harvest (cereals, specialty coffees and snacks) and Saucery (sauces and dips).

In addition to purchasing Raw Pressery and Saucery, the company also acquired snack brand Postcard.

Wingreens reported consolidated revenues of: ₹260 crore, downwards ₹311 crore a year ago. Losses narrowed sharply ₹65 crore ₹180 crore in FY23, as per MCA records provided by Tofler. The company is yet to file its FY25 financial reports.

Check for red flags

The company’s auditor had flagged material uncertainties regarding Raw Pressery’s ability to continue operating in FY24 filings, nearly three years after Wingreens acquired the brand through a distressed sale.

The filings also showed that Wingreens’ holding company had suspended operations of Dharmya Business Ventures Pvt Ltd, which operates Postcards, as part of efforts to improve unit economics.

However, the filings stated that the company implemented restructuring measures to reduce operating losses and prepared a detailed marketing and sales plan to increase revenue growth and market share. Since then, Wingreens has expanded Raw Pressery’s portfolio to include energy drinks, iced teas and refreshing beverages.

crowded market

India’s FMCG market generated $245.39 billion in revenue last year and is expected to reach $615.87 billion in FY27, according to India Brand Equity Foundation data.

Wingreens competes in categories with players such as Veeba, The Good Bean, Farmley, Two Brothers Organic Farms, Sweet Karam Coffee and Weikfield.

“The market is full of both established and new brands trying to find a foothold,” said Kartik Ganpathy, co-founder of CMS INDUSLAW, a law firm.

Investors typically focus on brand strength, scalability, trademark protection and defensible business arrangements, Ganpathy said. “Investors’ interest in Indian FMCG brands sauces, spreads and juices is driven by convenience, urbanization, premiumization and the ability to create multi-brand platforms,” ​​he said.

Although seasonality poses a risk in categories such as fruit juices, it is generally manageable. “This is typically addressed through product mix, supply and distribution contracts and working capital planning,” Ganpathy added.

“Growth will come from category extensions (both depth such as health and wellness and breadth from children to seniors), express commerce, D2C and mobile outlets such as food trucks and trade shows, and new channels such as impulse purchases,” he said.