JM Financial Private Equity has finalized an investment in a Pune based consumer packaged food company, Walko Food Company Private Limited, to fund the Company’s current expansion plans. Proceeds from the Series-A investment will support brand building activities and augmentation of the existing capacities of the Company, according to a statement.
Walko Food Company owns a natural ice cream brand “NIC”. The Company operates a manufacturing plant in Pune and retails in over 50 cities across India, via multiple sales channel like Food Delivery platforms, Modern Trade, Parlors, and HORECA.
Commenting on the capital raise, Mr. Jeetendra Bhandari (JB), Managing Director, Walko said, “This growth capital infusion and partnership with a seasoned investor like JM Financial Private Equity will help us accelerate our current expansion plans and expand market share. NIC has emerged as a fast growing natural ice cream brand in the country including during FY20-21 and is rapidly scaling up. Walko is focused on building brands which deliver on quality, innovation and superior customer experience. Walko plans to deploy funds to increase availability to 100+ cities in the next 12 months, open Flagship parlors (Experience Centers), develop a strong franchise network, manufacturing capacity expansion and marketing.”
Commenting on the investment, Mr. Darius Pandole, Managing Director & CEO, PE & Equity AIFs, JM Financial said, “The ice cream market is a large and growing market and we believe that there is a long runway of growth on account of low per capita ice cream consumption, increased access and development of multiple distribution channels and formats. Within the broader ice cream market, NIC has established a good product market fit with its differentiated, high quality natural ice cream and direct to consumer strategy. All these factors have led to a strong brand recall for NIC and a healthy customer repeat ratio. NIC is well placed to address the changing customer preferences for access to relatively healthier, preservative free snacking options. The fund infusion will help the company scale-up its business and expand its market share.”
Advisors on the deal included Dexter Advisors (Investment Banker) and Think Law (legal advisor to JM Financial India Fund II).
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.