Farmley looking to scale up offline presence

Healthy snacking brand Farmley is scaling up its offline presence and expects the channel to contribute nearly 30-40 per cent to the overall business in the next 2-3 years. The brand, which raised $6.7 million in December, has crossed the ₹300 crore ARR mark.

• Also read:Snacking brand Farmley raises $6.7 million in funding 

Leveraging on its back-end linkages with over 5,000 farmers and in-house production facilities, the brand offers a range of products that includes raw dry fruits and nuts, trail mixes, makhanas and natural desserts among others.

In a recent interaction, Akash Sharma, co-founder, Farmley told businessline, “Currently we are sold at over 5,000 retail outlets. We aim to expand our offline presence across 60,000-70,000 outlets. Currently, the online channel contributes a large chunk to our business. But, as we scale-up, we expect offline channels to contribute 30-40 per cent or even 50 per cent to the overall business in the next 2-3 years.”

In December, the brand raised $6.7 mn in its pre-series B funding round led by BC Jindal Group. Existing investors DSG Consumer Partners, Omnivore and Alkemi Partners also participated in this round.

Sharma explained that Indian consumers are increasingly looking for guilt-free healthy snacks. “Our primary objective is to offer snacking products that have flavour, taste and indulgence but can be consumed guilt-free. The fresh funds are helping us expand our reach wider and increase our visibility,” he added. Last year, the brand roped in Rahul Dravid as its brand ambassador.

Talking about the brand’s growth, Sharma said, “ We are at an annualised run rate of ₹300 crore. We expect to garner a growth of ₹60-70 per cent next financial year. We have also seen some profitable months. But from the overall fiscal perspective, we expect to become profitable by the next financial year.”

While raw dry fruits and nuts contribute a large chunk to the overall business, the brand is also seeing strong growth in segments such as trail mixes, flavoured makhanas and flavoured dry fruits. Sharma explained that the company is also sharply focussing on the on-the-go snacking category by offering products at affordable price points.

• Also read:Farmley raises $6 m from DSG Consumer Partners, Alkemi Growth Capital and others

The brand is also looking at regionalisation strategy. “We have begun looking at launching products for micro-markets. These products will be focussed on a specific zone, taste palate and target audience,” Sharma explained. 

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