Mithila Foods Secures Seed Funding for Expansion

Mithila Foods, a fast-moving consumer goods company that focuses on food products rooted in Bihar, has successfully secured Rs 1.5 crore in seed funding from AJVC, an investment firm established by Aviral Bhatnagar. This initial investment will facilitate the company’s expansion of distribution channels, enhance the supply chain, and launch new product categories that celebrate Bihar’s culinary heritage, according to a press release.

About Mithila Foods

Established in January 2025 by Shubham Sunderka, Ankit Kumar, and Anshu Kumar, Mithila Foods prioritises staples including sattu, roasted chana, makhana, and katarni chuda, catering to consumers in Bihar as well as urban areas.

Rapid Growth and Revenue

In under five months, Mithila Foods has achieved remarkable growth, surpassing Rs 3 crore in annualised revenue, introducing over 20 SKUs, and reaching more than 25,000 customers across 4,000 pin codes. Starting from a warehouse in Dumka, the brand has broadened its reach nationwide, serving both migrant communities and urban consumers.

Distribution Strategy

The distribution strategy involves e-commerce platforms like Amazon and Flipkart, in addition to offline retail locations in tier I and tier II cities, thus ensuring a wide accessibility for its products.

AJVC’s Investment Approach

AJVC maintains a standard investment strategy that involves providing Rs 1.5 crore in exchange for a 9% equity stake in startups. To date, the firm has invested in nine pre-seed stage startups across various sectors, including AI, B2B, consumer brands, and consumer technology. Many of these startups are located in regions such as Assam and Jharkhand.

AJVC’s Funding Initiatives

In March, Aviral Bhatnagar’s A Junior VC (AJVC) successfully closed its first Rs 100 crore fund, aimed at supporting pre-seed stage startups in India, further enhancing its commitment to fostering innovation and growth.