Sixth Sense Ventures, a consumer-focused fund known for backing successful ventures like Bira91 and Vahdam, has invested INR 100 Cr (approximately $12 Mn) in the Indore-based spices brand Pushp. The investment comes as Pushp aims to expand its presence nationally in the burgeoning market, following a consistent revenue growth of 25% CAGR over the last five years.
Nikhil Vora, the founder and CEO of Sixth Sense Ventures, revealed that as part of the deal, the VC firm has acquired a stake in Pushp from its initial institutional investor, A91 Partners. A91 Partners had acquired a 25% stake in Pushp for INR 125 Cr in 2020.
Known for processing and blending spices such as chilli, turmeric, and coriander, Pushp has strategically invested in distribution and branding, expanding its footprint beyond Madhya Pradesh to states like Maharashtra, Rajasthan, Uttar Pradesh, Bihar, and Gujarat.
Vora commented on the evolving landscape of the consumer market, stating, “One key thing that I’ve seen in the consumer market is that incrementally a lot of disruptors are emerging from regional powerhouses.”
The funding injection aligns with Pushp’s ambition to tap into the INR 90,000-Cr market, with the branded spices segment estimated to be around INR 25,000 Cr. Pushp aims to transform from a regional leader into a significant national brand.
According to regulatory filings, Pushp recorded a 20% YoY growth in its FY23 operating revenue to INR 338 Cr, with profits showing a decline from over INR 16 Cr to nearly INR 10 Cr due to rising raw material prices.
The investment in Pushp comes amid the government’s push to explore new spice markets, strengthen existing ones, and promote value-added products to boost spice exports from the current $4 Bn to $10 Bn by 2030.
India, being the largest spice producer globally with a 70% share in spice production, is positioned to capitalize on the growth of the global spices and seasonings market, projected to reach $35.1 Bn by 2028, according to a report by IMARC Group.
