The Health Factory, known for its health-oriented bread products, raised USD 3.5 million in a seed funding round led by Peak XV’s Surge scale-up program for early-stage startups. Additionally, prominent angel investors such as Kartik Mehta, Ali Tambawala, and Sunil Tulsiani participated in this round.

The additional capital will expedite the Health Factory’s efforts in product development and research and development (R&D), allowing it to introduce new product categories.

Furthermore, the company intends to broaden its retail footprint in general and modern trade channels while improving its logistical and operational technologies.

The company also has plans to expand its retail presence in general and modern trade channels while enhancing its logistics and operational technologies.

Vinay Maheshwari, the founder of The Health Factory, expressed that this investment will empower the company to disrupt new markets with its health-focused offerings.

The company has received interest from various tier-1 and tier-2 cities, and this funding will enable it to expand its reach to more areas, ensuring that its products are accessible to a wider consumer base seeking healthier options.

Established in 2018 by Maheshwari and Mohit Sankhala, The Health Factory specializes in protein bread, vegan protein bread, and zero maida bread. The company asserts that all its products are free from chemicals and preservatives.

The brand’s products are currently accessible in Mumbai, Pune, Bengaluru, Delhi, Chandigarh, Ahmedabad, Lucknow, Hyderabad, and Chennai through quick commerce platforms like Zepto, Swiggy Instamart, and Blinkit.

This funding round coincides with the emergence of quick commerce and the increasing demand for direct-to-consumer (D2C) brands, driven by rapid deliveries on these platforms. As a result, there is substantial investor interest in early and mid-stage D2C companies.

On September 24, Tuco Intelligent, a kids’ personal care brand, disclosed that it had secured $2 million in a seed funding round led by Fireside Ventures and Whiteboard Capital.

The Health Factory highlighted that its sales have surged by 65 times in the past 24 months. The brand aims to penetrate tier-1 and tier-2 cities further to meet the increasing demand for healthier bread options.

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