Singapore-based venture capital firm Jungle Ventures has doubled down on its investment in Walko Food, injecting a substantial $20 million into the ice cream brand and quick-service restaurant company. This move reflects a larger trend within the food-linked startup ecosystem, where investors are increasingly drawn to businesses that prioritize quick capital efficiencies and centralized infrastructure.
Walko Food, home to popular ice cream brands NIC and Grameen Kulfi, as well as a chain of ice cream parlours, has received its second investment from Jungle Ventures in less than a year. This strategic move aligns with Jungle Ventures’ focus on early-growth-stage companies in India and Southeast Asia.
Investors specializing in the consumer and retail sectors suggest that the current market is ripe for businesses that emphasize streamlined operations and centralized distribution infrastructure. Despite a decline in venture capital deployments in the broader food brand space from 2022 to 2023, deal density has been steadily increasing.
The beginning of 2024 witnessed robust deal activity in the sector, with $97 million invested across seven venture capital deals in January alone. Notable startups such as Country Delight, The Baker’s Dozen, Wow! Momo Foods, and Slurrp Farm secured significant growth-stage funding during this period.
According to Venture Intelligence data, in 2023, 30 startups in the food brand sector raised a total of $218 million, averaging $7 million per deal. This figure reflects a consistent upward trend in investment compared to previous years.
Manu Chandra, founder of Sauce.vc, an early-stage consumer-focused venture capital firm, highlights the growing interest among investors in food brands that adopt a retail-centric approach akin to traditional consumer goods firms. Recent investments by Sauce.vc include Hocco Ice Cream and packaged food startup FoodKraft.
Arpit Beri, partner at Jungle Ventures, emphasizes the capital efficiency of businesses with centralized distribution models, citing the significantly lower capital requirements compared to those with multiple kitchens and chefs. Beri underscores the attractiveness of the FMCG-like nature of the food and beverage sector for investors.
Established in 2012, Walko Food’s flagship brands, NIC and Grameen Kulfi, have garnered significant traction, with products available on platforms such as Swiggy, Zomato, Zepto, and Bigbasket. The recent funding will fuel Walko’s expansion efforts, including the introduction of Yummo, a mass-market ice cream brand tailored for the Indian retail market, tapping into a $3 billion opportunity.
Sanjiv Shah, director of Walko Food Company, expressed gratitude for the capital infusion, highlighting its role in expanding operational capacity, enriching product offerings, and diversifying with the launch of Yummo. With Jungle Ventures’ continued support, Walko Food is poised for accelerated growth in the dynamic food industry landscape.