Investment in Scandalous Foods: Leading B2B Indian Sweets Brand

Scandalous Foods, a renowned B2B Indian sweets brand, has successfully secured Rs 2 crore in its current seed funding round, spearheaded by New Age India Fund. The startup has received three term sheets from various investors and is currently reviewing these options to finalise the funding round.

Previously, the company raised Rs 3 crore in its pre-seed funding round in February 2024 with support from Indian Angel Network and others.

The funds will be directed towards enhancing production capabilities and bolstering its SME HoReCa (Hotels, Restaurants, and Catering) distribution network, thereby propelling the next phase of growth for Scandalous Foods, as stated in a press release.

Mission and Vision of Scandalous Foods

Founded in August 2022 by Sanket S, Scandalous Foods aims to transform the sweets industry specifically for the restaurant sector. The brand is dedicated to quality and innovation, providing preservative-free sweets with a six-month shelf life, conveniently offered in single-serve sizes. While currently operating as a B2B entity, the brand has aspirations to expand into B2B2C and B2C markets.

Operational Focus and Future Plans

Scandalous Foods operates with an emphasis on cloud kitchens and intends to broaden its reach within various food service sectors. Soon, the brand plans to launch mithai bars and sachets, designed for spontaneous indulgence without the guilt.

The co-founder of Scandalous Foods expressed that the brand is not merely engaged in selling Indian sweets, but rather aims to establish itself as the leading mithaiwala in addressing unplanned post-meal impulse purchases. The recent funding marks a significant milestone in the brand’s journey to embed its sweets into restaurant and catering menus across India. With increased production, a more robust distribution network, and innovative products on the way, the brand is prepared to share its delightful creations with a wider audience.

Growth and Market Reach

Scandalous Foods has reportedly experienced a remarkable 7x growth in the calendar year 2024, successfully selling over two million cups of Indian sweets across nine cities. The brand reaches nearly one million unique consumers through its 27 B2B clients and more than 1,500 distribution points.

Based in Nashik, the startup is looking to introduce 2-3 new products and expand into additional sub-channels within its existing markets. While it has initially targeted key account HoReCa clients, the brand will now extend its focus towards SME HoReCa and caterers.