GRM Overseas Ltd. has successfully sold a more than 3 percent stake in its subsidiary, GRM Foodkraft Pvt. Ltd., focused on the domestic India-based food business. The transaction, undisclosed in amount, was completed with Sauce.vc, a prominent consumer-focused venture capital fund. Sauce.vc has not only acquired the stake from GRM Overseas but has also secured an additional 1 percent stake from other shareholders.
GRM Foodkraft, with a robust presence in both online and offline retail, as well as the direct-to-consumer (D2C) segment, operates through a network of over 52 distribution centres (DCs), catering to more than 160,000 Kirana stores.
Atul Garg, Managing Director of GRM Overseas, expressed enthusiasm about the strategic investment, stating, “We are delighted to welcome Sauce.vc as a strategic investor. We look forward to deriving substantial advantages from the wealth of experience and a demonstrable history of creating new-age brands by the Sauce team.” Garg emphasized the shared goal of evolving their brands into distinguished names in their respective product categories.
Manu Chandra, Founder & Managing Partner of Sauce.vc, highlighted Foodkraft’s strong legacy and established strengths in supply chain and distribution of packaged foods and staples. Chandra outlined Sauce.vc’s plans to leverage this deep industry knowledge to launch new food brands in promising new categories, playing an enabling role in helping Foodkraft achieve its mission.
GRM Foodkraft, known for its diverse product offerings including basmati rice, wheat flour, and ready-to-cook kits, plans to deepen its presence in digital channels such as e-grocers, quick commerce, and e-commerce, aligning with Sauce.vc’s investment strategy.
Sauce.vc, with a track record of partnering with disruptors in the market, including Mokobara, XYXX, Innovist, Hocco Ice Creams, and The Whole Truth Foods, continues its focused portfolio strategy in the consumer sector. The deal signifies a strategic move for both entities as they collaborate to explore emerging areas in the packaged food market and expand their reach in the dynamic digital landscape.