ITC Limited and Nestle India are battling to buy into Yoga Bar, an 8-year-old health snack company based in Bengaluru, as the company is looking at growth equity. Delhi-based Dabur and VC fund A91 Capital were among those who also looked at the opportunity but passed.
Yoga Bar’s parent Sproutlife has been in the market to raise Rs. 150 crore from strategic and financial investors. “We are engaged in multiple conversations with venture capital funds and consumer companies. We have not signed on the dotted line with anyone yet. Both types of investors bring in different facets. While a consumer company’s distribution strength adds value to a company like ours, funds will provide the multiples that feed into the growth potential of the company, said Sproutlife.
The company, founded by sisters Suhasini and Anindita Sampath, first raised funding from Fireside Ventures in 2015. The venture capital firm, co-founded by former Helion Venture co-founder Kanwaljit Singh, invested $3.3 million in the startup from 2015 to 2018, according to VCCEdge, the data and intelligence platform of VCCircle. Elevation joined Fireside in Yoga Bar’s last equity fundraising, a series C round, in August 2020. Together, the Sampath sisters have a 49% stake in the company and are jointly the largest shareholders. The new investor is likely to become a large minority shareholder.
Yoga Bar sells protein bars and muesli and has diversified into peanut butter, whey protein and gluten-free oats. According to sources, it is growing at a rate of 100% year on year and is expected to generate Rs. 140-150 crore in sales in FY23.It is expecting valuations that are four times its sales. The company did not want to talk about its financial numbers.
A recent report by Avendus Capital forecast the Indian snack food segment to grow to $30 billion in the next five years, expecting Indian households to double their spending on health-focused foods and beverages in the next five years. “In 2020, health-focused foods and beverages contributed 11 per cent to the $88 billion packaged foods and beverages market in India. “This share is expected to move up to 16 per cent, or $30 billion, by CY2026,” the report said.