Health food brand True Elements has secured Rs 10 crore in a funding round from Maharashtra State Social Venture Fund (MSSVF), a fund managed by SIDBI VC.
The fresh capital will be used by the company to strengthen its brand and product innovation.
Puru Gupta, Co-Founder of True Elements, said, “Our focus on technology and cost-efficiency has ensured that we are one of the most capital-efficient startups in the country. While we have been profitable so far this year, our endeavor now is to maintain consistent growth in EBITDA margins while scaling up, even with external funds.”
The Pune-based startup uses Indian local produce such as millets, grains, and seeds. It employs 75% of women in its production factory based out of Pune.
Sreejith Moolayil, Co-Founder of True Elements, added, “We are not preparing for Rs 100 crore, we are now preparing for Rs 1,000 crore topline in the next few years. What was a dream a few years back is now our KRA!”
Mahendra Lodha, Senior Fund Manager, the SIDBI, stated, “True elements focus on people, product, and ecosystem got their attention and their capital efficient model has made them really attractive in these times. Being an EBITDA positive company without huge infusion till date has made them self reliant to tide over the COVID-related opportunity.”
Presently, True Elements generates sales from its own website, marketplaces, and over 6,000 general trade stores spread across India.
True Elements claims that it grew 3X since the COVID lockdown and has also improved its customer retention.