Happilo, a dry fruit snacking company, has set a target to become a Rs. 1,000 crore brand within the next two years, according to Vikas D. Nahar, the founder, and CEO of the company. In the fiscal year 2022, Happilo’s revenue from operations increased by 35.7 percent to Rs. 190 crores, compared to Rs. 140 crores in the previous fiscal year.
Currently, the company has an annual recurring revenue (ARR) of Rs. 500 crores. Although the exact figures were not disclosed, Nahar mentioned that revenue doubled in the fiscal year 2023 compared to the previous year. Happilo achieved approximately Rs. 100 crores in revenue during its first four years of operation without any external funding.
Nahar claims that Happilo is currently the largest consumer brand in the dry fruit snacking space. The company has raised around Rs. 300 crores through two funding rounds, including an initial round of Rs. 100 crores in February 2021. Its investors include A91 Partners, Motilal Oswal Private Equity, and Venture Garage. As of February 21, 2022, Happilo was valued at $192 million, according to market research platform Tracxn.
In terms of expansion, Happilo is primarily focusing on 3–4 metro cities, aiming to establish its dominance in these markets. The company places significant emphasis on brand infrastructure, research and development, and manufacturing. It has invested Rs. 100 crores in capacity building and product development. While being positioned as a premium brand, Happilo aims to maintain a balance between price and premiumness to ensure affordability. Currently, it operates 10 stores in cities such as Bengaluru, Mumbai, and Gurgaon and has a presence in 15,000 general trade (GT) stores.
Happilo plans to reach a total of 1 lakh stores within the next 12 months and aims to establish approximately 100 company-owned stores in the next 2 years. With approximately 90 percent of the overall market comprising general trade businesses in India, Nahar acknowledges the challenges of building a GT business in the country. Happilo hopes to become a relevant brand for every snacking occasion, considering India’s snacking culture.
The company manufactures its products in Bengaluru and operates an R&D facility in the same city. It sources most of its raw materials directly from farms through aggregators. Happilo currently has 150 distributors across India and approximately 40 percent repeat consumers. It sells 60 percent of its products through e-commerce platforms, including Amazon, Flipkart, Blinkit, and its own website, while the remaining 40 percent is sold through offline channels.