19 March 2024 – Rukam Capital managing partner Archana Jahagirdar told FE in an interview that among Indian consumer firms, beauty startups remain a topic of interest for investors. The early-stage venture capital company recently created a Rs 100 crore tech-focused fund in addition to its Rs 150 crore fund for consumer entrepreneurs.
In addition to beauty, Jahagirdar is optimistic about consumer businesses in India that are providing solutions for pain management and gut health. “Medicine can only address a limited number of long-term issues that individuals face. Thus far, the firm has made investments in businesses including Pilgrim, Burger Singh, Sweepy Owl Coffee, and Curefoods, which runs the EatFit, Yumlane, and Aligarh House Biryani brands.
After raising a $20 million Series B financing, the fund announced the withdrawal of its direct-to-consumer brand, Pilgrim, in October of last year. According to Jahagirdar, customer acceptance of sustainable packaging and goods has yet to increase among entrepreneurs. Although we have examined sustainable items and brands, that velocity has yet to be included. The pace of consumer acceptance does not match the volume of discussion around it, the speaker said.
Conclusion
According to Jahagirdar, not only is the financing climate improving for consumer businesses this year, but later-stage venture capital firms are also showing interest in their portfolio companies as investors’ exit alternatives have become more apparent.
