Yu, a fast-growing consumer food brand, has raised Rs 55 crore (approximately $6.5 million) in its Series B funding round, co-led by prominent investor Ashish Kacholia and the Asian Promoter Group. This round provided significant returns for some of the brand’s early seed-stage investors, who saw over 4x gains on their initial investments.
The fresh capital infusion will help Yu accelerate its distribution network and enhance its product offerings, with a strong focus on expanding its range of natural beverages. Yu recently launched a line of 100% fruit juices, free from concentrates and added sugars, as part of its strategy to diversify beyond its core food products.
Founded in 2021 by Bharat Bhalla and Varun Kapur, Yu has quickly gained traction in the consumer market by offering a variety of instant food and beverage products made with 100% natural ingredients. What started with instant cup noodles and pasta has evolved into a more extensive portfolio that includes ready-to-cook meals and natural beverages.
The company boasts a robust omnichannel presence, with its products available in over 7,500 physical stores across India. Yu has also partnered with Q-commerce platforms like Blinkit, Swiggy Instamart, and Zepto, and e-commerce giants such as Amazon, Flipkart Grocery, and Dmart Ready. In the institutional sector, it supplies major airlines like Akasa Air and SpiceJet. Internationally, Yu has made its mark in South Africa, where its products are sold in more than 2,000 retail outlets.
This latest funding round positions Yu to scale further, with plans to strengthen its distribution channels and expand its presence both domestically and abroad.
