In a strategic move, Sixth Sense Ventures, known for its successful backing of startups like Bira91 and Vahdam Teas, has invested Rs 100 crore into the Indore-based spices brand Pushp. This investment, sourced from the SSIO-III fund, marks a significant shift within the spices sector. It has recently experienced heightened mergers and acquisitions (M&A) activity.
Founded by Mahendra and Surendra Surana, Pushp has established itself as a prominent brand in Central India. Furthermore, it expanded its presence beyond Madhya Pradesh, reaching markets in Maharashtra, Rajasthan, Uttar Pradesh, Bihar, and Gujarat.
Boasting an impressive 25% compound annual growth rate (CAGR) over the last five years, Pushp aims to transition from being a regional player to a national contender.
Nikhil Vora, the Founder of Sixth Sense Ventures, highlighted the increasing consumer inclination towards packaged and branded spices over loose, unbranded alternatives. He praised Pushp’s advantageous position to capitalize on this trend, crediting its experienced management team, efficient procurement strategies, modern manufacturing facilities, and robust distribution network.
Vora emphasized the evolution of spices from loose to packaged and now blended varieties, presenting an opportunity for premium pricing.
India’s spices market, estimated at Rs 90,000 crore, projects the organized and branded segment to grow to Rs 50,000 by 2025, showcasing a substantial 16% CAGR. Notably, the blended spices segment, offering higher margins, is witnessing rapid growth at a remarkable 25% CAGR. This growth aligns with contemporary culinary practices, catering to convenience and evolving cooking methods.
Recognizing this opportunity, Sixth Sense Ventures sees the potential for regional brands like Pushp to expand nationwide, leveraging the limited presence of multinational corporations (MNCs) in this market segment.
The infusion of Rs 100 crore by Sixth Sense Ventures into Pushp represents significant financial backing and a pivotal moment in India’s spices market. It underscores the potential of regional brands to capture national attention by riding the wave of evolving consumer preferences.
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