There is a growing interest in investing in consumer food brands in India, particularly in regional brands that offer authentic taste patterns specific to their areas. According to Pritha Jha, co-founder of Pioneer Legal, a law firm that has helped food brands raise capital, many investment activities are happening in cities like Nashik, Jaipur, and Udaipur. Jha notes that snack brands, in particular, have immense scope for scalability, and private equity firms are interested in investing in these brands, especially when the next generation of family-owned businesses is not interested in taking over.
Recent investments in consumer food brands include Motilal Oswal’s ₹330-crore investment in Bengaluru-based ready-to-eat sweets company Lal Sweets, Sixth Sense Ventures’ ₹100-crore deal for A91 Partners’ stake in Indore-based spice brand Pushp, and Jashvik Capital’s minority stake in Bharuch, Gujarat-based snacks firm Jabson’s Foods. The interest in food brands is reflected in the significant increase in funding, with $1.68 billion raised across 14 deals in 2025 so far, compared to $507 million in 2024 and $141 million in 2023.
The growth in the food industry is driven by the advent of e-commerce and quick commerce, which has democratized distribution, making it easier for brands to reach consumers. Most food brands generate a lot of cash and are largely profitable, making them attractive to investors. The entry barriers for new brands are high, and investors are prioritizing unit economics, making established brands with a resilient business model and in-house distribution infrastructure more appealing.
The opportunity to scale up regional brands is significant, with over 100 million households entering the middle-income category, and the food services market expected to grow at a CAGR of 10-11% through 2030. However, scaling up these brands can be challenging due to ongoing challenges such as intense competition, differences in tastes and consumer preferences across geographies, and high selling expenses to maintain presence in new markets.
Despite these challenges, private equity firms continue to invest in regional brands, with the aim of scaling them up and expanding their reach. The success of these investments will depend on the ability of the brands to adapt to new markets and consumer preferences, while maintaining their authenticity and unique selling proposition. With the right strategy and support, these regional brands can become national players, and the interest in investing in consumer food brands is expected to continue to grow.