Founded in August 2022 by entrepreneur Sanket S., Scandalous Foods is making a mark in India’s foodservice industry with its preservative-free, single-serve Indian sweets for restaurants, caterers and cloud kitchens. This latest fundraise follows the company’s earlier INR 3 crore pre-seed round in February 2024, backed by Indian Angel Network and other investors. The company is in talks with three other investors and a family office for its ongoing Seed+ round.
Use of Funds
According to the company, the new capital will be used to fuel its next growth phase. 50% of the funding will be used to scale up production capacity to meet the growing demand which has seen month-on-month growth in 2024. 50% will be used for expansion with 30% invested in strengthening SME HoReCa (Hotel, Restaurant, and Catering) distribution network – targeting smaller restaurant chains with less than 5 outlets – and 20% for online and offline marketing initiatives.
“We are not just selling Indian sweets – we are working towards becoming the biggest mithaiwala in the unplanned post-meal impulse purchase space,” said co-founder Sanket S. “This funding is a huge milestone in our journey to make our sweets a staple in restaurant and catering menus across India. The love we have received so far has been amazing and this is just the beginning.”
Sanket also praised the professionalism of New Age India Fund, saying they were swift and aligned with the company’s long term vision.
New Age India Fund
Avinash Kalia, Chief Investment Officer at New Age India Fund said: “At our fund, we look for founders with vision and capability to execute and scale in unique high potential niches. Sanket and the team fit the bill perfectly. With prior experience in the food industry, they have identified a great opportunity and are well placed to capitalise on it.”
Strong Growth Numbers and Footprint
Scandalous Foods has seen 7x growth in calendar year 2024, sold over 2 million cups of Indian sweets across 9 cities. The brand has 27 B2B clients and has built a robust distribution network with over 1,500 distribution points reaching nearly 1 million unique consumers. Currently it has preservative free products with 6 months shelf life designed for convenience and freshness. This has worked well with HoReCa clients who need consistent quality desserts for volume driven foodservice.
Forward Plans: Products, Revenue, and Global Expansion
Looking ahead, Scandalous Foods is working on:
- 2-3 new SKUs for B2B and new sub-channels in existing geographies.
- 5,000 distribution touchpoints by mid 2026.
- B2B2C product label, FAAD to go deeper into consumer facing foodservice channels.
- INR 20 crore+ revenue in next 12-15 months.
- International expansion into Middle East by 2026 leveraging India’s culinary influence in the region’s hospitality industry.
In line with changing consumer behavior and demand for indulgence without guilt, the company will also introduce new formats like mithai bars and sachets for quick consumption.
Conclusion
Scandalous Foods’ latest funding is a testament to investor confidence and the growing demand for innovation in traditional sweets space in India. Positioned at the intersection of tradition and convenience, the brand is going to be a big player in a highly fragmented market and will tap into both domestic and global opportunities. With a clear roadmap, robust distribution and focused leadership, next few quarters are going to be big for this Nashik based startup.
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