The Health Factory, a brand focused on healthy bread, secured $3.5 million in seed funding. Surge, Peak XV’s program for scaling early-stage startups, led this funding round.
Angel investors such as Kartik Mehta, Ali Tambawala, and Sunil Tulsiani participated in the funding round.
The Health Factory plans to use the new funds to speed up product development and invest in research and development (R&D), which will help them create new product segments.
The company aims to grow its retail presence in general and modern trade channels while improving its logistics and operational technologies.
“This investment will enable us to disrupt additional markets with our health-focused offerings. We have received interest from numerous tier-1 and tier-2 cities, and this funding will allow us to expand our reach to more pin codes, ensuring our products are accessible to more consumers seeking healthier options,” said Vinay Maheshwari, founder of The Health Factory.
Founded in 2018 by Maheshwari and Mohit Sankhala, The Health Factory specializes in producing protein bread, vegan protein bread, and zero maida bread. The company claims that all its products are free from chemicals and preservatives.
The brand’s offerings are now available in cities like Mumbai, Pune, Bengaluru, Delhi, Chandigarh, Ahmedabad, Lucknow, Hyderabad, and Chennai. Customers can purchase them through quick commerce platforms such as Zepto, Swiggy Instamart, and Blinkit.
This funding comes as quick commerce and demand for direct-to-consumer (D2C) brands are surging, fueled by the fast deliveries offered by these platforms. As a result, investors are increasingly interested in early and mid-stage D2C companies.
On September 24, kids’ personal care brand Tuco Intelligent announced raising $2 million in a seed funding round led by Fireside Ventures and Whiteboard Capital.
Other brands, such as organic fresh produce startup Gourmet Garden and healthy snack company The Whole Truth, are also in talks to secure funding.
The Health Factory reported a 65-fold increase in sales over the past 24 months. The brand plans to expand into tier-1 and tier-2 cities to meet the rising demand for healthier bread alternatives.
