The Good Bug, a direct-to-consumer (D2C) brand, raised $3.5 million in its latest funding round led by Fireside Ventures.
The company claims that it would use a significant portion of the funds for brand investments, team expansion, and the development of new products.
The Good Bug, a wellness company founded in 2022 by Keshav Biyani and Prabhu Karthikeyan, focuses on gut health and seeks to address issues such as bloating, constipation, weight management, and others through the gut.
“Our journey has been about more than just business; it’s about transforming lives. We are excited to have Fireside Ventures as our partner in this journey,” said Biyani, in a statement.
Biyani had previously worked as Future Group India’s head of strategy and emerging business. Karthikeyan is a serial entrepreneur in the consumer space who has previously cofounded the hair care brand Athena Life Sciences and the men’s grooming brand United Consumer Brands.
The Good Bug currently has 100,000 customers, according to the company.
“As consumers are getting more health-conscious and looking for safe and effective solutions with long term benefits; we see a huge potential for gut health. The Good Bug is at the forefront of this segment with their innovative and effective products,” said Ankur Khaitan, principal, Fireside Ventures.
With the pandemic, the D2C space has seen a significant infusion of capital with the increase in online shopping by customers. Massive industry consolidations have also taken place over the past several months as large, fast-moving consumer goods (FMCG) brands compete for market share.
Goat Brand Labs, an e-commerce rollup brand backed by Flipkart Ventures and Tiger Global, acquired Chumbak earlier this year for an undisclosed amount.
Consumer giant HUL acquired a 51% stake in the plant-based supplement brand Oziva last December for Rs 264 crore, and over the next three years, it plans to acquire the remaining 49%.