Jagdish Farshan raises ₹43.5 Cr Series A for quick commerce

Legacy snacks brand Jagdish Farshan has raised ₹43.5 crore, approximately $4.6 million, in a Series A funding round. The investment was led by Sharrp Ventures, the investment office of Marico founder Harsh Mariwala, and included participation from a group of angel investors, according to a report by Inc42.

This marks the first time the Vadodara-based company has taken institutional capital since its founding. The funds are earmarked for expanding manufacturing capacity, broadening retail distribution, and deepening its presence on quick commerce platforms as it aims to take its Gujarati snacks national.

Funding for Manufacturing and Market Expansion

The company is currently operating its manufacturing facilities at 90% capacity. To support its growth plans, Jagdish Farshan is constructing a new facility spanning 2.5 to 3 lakh square feet in Vadodara. This new plant is expected to become operational by July of next year.

On the retail front, the brand currently operates 27 outlets, predominantly in central Gujarat with two stores in North America. It plans to add 30 to 40 new stores over the next two years. The initial focus will be on deepening its footprint within Gujarat before expanding its distribution network into Maharashtra, Madhya Pradesh, and other markets.

Strategic Push Into Quick Commerce

While physical retail still contributes 85% of revenue, digital sales and exports account for the remaining 15%. A key growth strategy is a focused push onto quick commerce platforms like Blinkit and Swiggy Instamart in Gujarat, and BigBasket in Gujarat, Mumbai, and Pune. CEO Aakash Kandoi told Inc42 that the company sees a major opportunity in these fast-delivery channels.

He argued that conventional ecommerce, with its longer delivery timelines, is less suited to impulse snack purchases. "Food is something which is more like craving based. You want to eat it right then and there," Kandoi said.

To crack the quick-commerce shelf, the company has adapted its product offerings. It has introduced smaller, 100-gram packs specifically for these platforms, a shift from its traditional 250-gram and 500-gram packs. This move is designed to lower the barrier for trial. The company is positioning itself in a more premium segment compared to mass-market namkeen brands.

Balancing Digital and Physical Retail

Despite the digital push, Jagdish Farshan continues to invest in its physical stores. Its outlets, typically spanning 2,500 to 3,000 square feet, combine retail with dining and a quick-service restaurant format serving items like dhokla and patra. The company has also operated its own direct-to-consumer (D2C) website for about eight years, which currently generates around 250 to 300 orders daily.

However, Kandoi stated the company is not aggressively pushing its products through conventional ecommerce marketplaces like Amazon or Flipkart. Its performance marketing efforts for the D2C site began roughly three years ago.

Part of a Broader Legacy Brand Shift

The fundraise and strategy highlight a wider trend of legacy Indian consumer brands turning to digital channels for growth. The report cites the example of century-old tea brand Wagh Bakri, which launched its D2C site in 2015 and now sees about 8% of its revenue from digital channels. Another example is Neeru's, a brand that began as a tailoring shop in 1971, which now derives 25-30% of its business from online sales after a pandemic-induced pivot.

Jagdish Farshan itself has grown at a compound annual growth rate of 45% over the past five years, funded internally until now. Kandoi said the company was seeking capital and an operating partner to help transition from a regional player to a pan-India brand. He highlighted Sharrp Ventures' experience with food and beverage brands like Slurrp Farm and Bira 91, along with Harsh Mariwala's background in building Marico, as key factors in the investment decision.

The company offers over 500 products across traditional snacks, namkeen, and sweets.