Instant Food Brand Yu Raises INR 55 Cr in Series B Funding to Accelerate Growth With the raised funds, the consumer food brand aims to expand its distribution channels and strengthen its product offerings, especially in its newly launched range of 100% fruit juices.
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Yu, an instant food and beverage products maker, has raised INR 55 crore in its Series B funding round, led by returning investors Ashish Kacholia and the Asian Paints Promoter Group, represented by Manish Choksi and Varun Vakil.
This funding round marks a pivotal moment for the company, enabling it to expand its distribution channels and strengthen its product offerings, especially in its newly launched range of 100% fruit juices.
Founded in 2021 by Bharat Bhalla and Varun Kapur, Yu has quickly made a name for itself by crafting healthier, all-natural packaged foods and beverages. The brand initially focused on instant cup noodles and pastas, but it has since broadened its portfolio to include ready-to-cook noodles and natural beverages, all claiming to boast zero concentrate and no added sugar.
Yu also claims to have garnered a significant market share in the cup noodles category and now leads the market for hakka noodles across online platforms.
Notably, some of Yu's flagship products, such as its 100% Whole Wheat Noodles and 100% Coconut Water, have achieved breakout sales, outpacing established competitors.
The company claims to have developed a range of 25 unique instant food and beverage products that closely mimic freshly prepared meals. Advanced technologies like lyophilisation and flash pasteurisation are used in crafting their noodles, pastas, and fruit juices.
Yu has established an omni-channel distribution network, reaching over 7,500 stores across India. Its products are available on all major quick-commerce platforms such as Blinkit, Swiggy, Instamart, and Zepto, as well as on e-commerce giants like Amazon and Flipkart Grocery.
Furthermore, Yu is expanding its footprint in South Africa, where its products are sold in over 2,000 retail outlets. The brand has experienced robust growth, having sold more than 1 million units in September 2024 alone.
With operations based out of a 30,000 sq. ft. facility in Gurugram—certified by UK FSSC 22000 and US FDA—Yu is already planning a second facility to accommodate its rapid expansion. The company has grown its team to over 200 employees.
Founders Bharat Bhalla and Varun Kapur expressed their enthusiasm, stating, "We are incredibly motivated to raise significant growth capital from such esteemed investors. Version 2.0 for Yu is officially underway with the launch of 100% fruit juices, our second product category."
"With our current annualised revenue run rate of INR 50 crore, we aim to triple our revenue over the next two years through enhanced distribution, new product launches, and category expansion. Our goal is to remain at the forefront of the 'better for you' consumer food revolution in India and beyond," they added.
