Vadodara-based frozen food products exporter Global Gourmet has raised $10 million from India Agri Business Fund II (IABF-II).
Co-sponsored by Rabobank, UK’s CDC Group and Asian Development Bank, IABF-II has a fund size of $150 million. The IABF-II has invested first time in the frozen food space in India.
Rabo Equity Advisors Chairman and Managing Director, Rajesh Srivastava said that they have acquired a minority stake in the Global Gourmet company, reports Mint.
He further added that the frozen food sector has been doing well and will grow at a very high rate for the next 8-10 years. Funded by Dutch financial services provider Rabobank, Rabo Equity Advisors, a private firm is the investment advisor for IABF-II.
Last year, IABF-II had invested Rs 100 crore and acquired 40 per cent stake in Olive Bar and Kitchen. In 2016, the investment company also invested $15 million in Ludhiana-based food products company, Cremica Foods and gained a minority stake in the company.
Founded in 2008, Global Gourmet supplies its products to stores like Tesco, Amul, McCain, Sumeru, MTR Foods. The company also exports its products to UK, European Union, US, and Australia, reads its website.
The frozen food products exporter plans to increase its capacity for protein-based and other products. The company will use the funds for growing its presence in markets like India and globally. With the fresh funding, the company claims to grow its revenue to Rs 500 crore from Rs 70 crore now in the next five years.
Over the past few years, startups focusing on gourmet food segment are becoming attractive for investors.
A few years ago, the South Indian ready-to-cook packaged food startup, iD Fresh Food had raised Rs.35 crore from Helion Venture Partners. Gurgaon-based Bueno which delivers global gourmet food had raised $600k from an undisclosed angel investor.