Fountainhead Foods, the company behind Health Sutra brand of millet-based products, has raised investment from early stage venture capital fund Ankur Capital and Hyderabad Angels.
The money will be used to expand the distribution network, build the brand and introduce more products, a release said without giving details of the investment.
Founder and CEO of Fountainhead Foods Sai Krishna Popuri said Health Sutra products are available in over 600 stores in Telangana and Andhra Pradesh. The company, he added, will set up a new unit in Hyderabad with a capacity to process 150 tonnes of millets a month.
The existing facility, also in the city, has a capacity of 15-18 tonne a month. A bootstrapped company, an investment of Rs.70 lakh has gone into the venture.
Apart from consolidating its position in the two States, a foray into Karnataka and Maharashtra within 6-8 months and growing its presence in modern retail are other plans of the company. Noting that Health Sutra is about millet grains such as Jowar and focused on ready-to-cook breakfast foods, he said whole wheat biscuits were launched recently and healthy snacks were on the cards.
Saral Talwar (Executive Director of Talwar Group) from Hyderabad Angels will join the Board of Fountainhead Foods, while P.S.Sreekanth, Investment Director of HA will join the board as an observer. The release said Ankur Capital invests up to Rs.5 crore in technologies and product innovations in the areas of agriculture, healthcare and education. Hyderabad Angels invests upto $ 1 million as part of pre-series A round funding.
On further fund raising plans, Mr.Popuri said it was a bootstrapped company and the investment made was about Rs.70 lakh. The plan is raise $ 4 million in the next round within 18 months.