Sixth Sense Ventures has invested ₹100 crore in Indore-based Pushp Brand (India) through its fund SSIO-III. The spices space has seen a lot of M&A action in recent years.
Founded by Mahendra and Surendra Surana, Pushp is the leading spices brand in Central India and has extended its reach beyond Madhya Pradesh to States like Maharashtra, Rajasthan, UP, Bihar, and Gujarat. It has recorded revenue growth of 25 per cent CAGR over the last five years and aims to become a significant national brand.
In a Linkedin post, Nikhil Vora, Founder, Sixth Sense Ventures, said that a large, sticky, fast-growing category, with a great margin profile and distribution moat makes spices one of the most attractive consumer segments. “As consumers increasingly shift from loose, unbranded spices to packaged, branded alternatives, Pushp is strategically positioned to capitalise on this shift. With a seasoned management team, optimal procurement, state-of-the-art manufacturing, and robust distribution, Pushp is transitioning from a regional heavyweight to a national one. This evolution will enable significant value unlocking,” he added.
While the overall size of the spices category is pegged at ₹90,000 crore, the organised and branded spices segment is expected to grow to ₹50,000 crore by 2025, growing at a 16 per cent CAGR, as per estimates by Avendus Capital. The blended spices segment, which has higher margins, is growing at a 25 per cent CAGR, catering to new-age cooking and growing need for convenience.
“Regional leadership along with a high share of blended results in superior margin profiles and cash-flow generation. Thus, it presents large expansion potential for regional brands to build a national play, with almost no presence of MNCs,” the consumer-focused VC firm stated.
Vora noted in his Linkedin post that spices have seen value evolution across decades, from loose to packaged to blended, extending a 6x pricing premium. He added that Pushp, with its diversified range of CTC, straight spices, blended spices, and value-added products participates across the entire spices value chain.
Mahendra Surana, Co-founder of Pushp, said, “The Indian consumer is focused on taste, quality, and reliability, and our sharp focus on these factors has helped us build deep trust with customers to become one of the top brands in the spices category. We are thrilled about the next phase of growth as we build Pushp into a leading spices brand in the country.”