Suite42, a B2B food processing platform has raised $4.3 million in seed funding from Omnivore and Orios Venture Partners. Other investors including Titan Capital, All In Capital, Pointone Capital, and prominent angel investors including Sujeet Kumar (Udaan) participated in the seed funding.
Based in Bengaluru, Suite42 provides contract manufacturing solutions for food processing, serving diverse B2B clients across the FMCG, agribusiness, and grocery industries.
Suite42 plans to use the seed funding for talent acquisition, developing the “Suite42 Standard” in the food processing ecosystem, launching raw material financing, and piloting cross border trade (exports).
In the next 18 months, the start-up plans to work with various B2B clients including e-commerce, D2Cs, and FMCG brands, as well as 2000 modern trade outlets across multiple cities, the company said in a statement.
Suite42 was founded in 2022 by Rahul Ratan, Ramakrishna Cheruku, Chethan S, and Shriram S.
Rahul and Ramakrishna are IIT graduates who were previously working with Udaan and Microsoft, respectively. Chethan is an NIT graduate who has previously worked with Udaan and Hyundai Motors, while Shriram, an alumnus of IIM Lucknow, has also worked with Udaan. Together, the founders have a deep knowledge of operations, logistics, credit, and the food supply chain.
“We are excited to start our journey of potentially redefining the food processing industry in India. Our mission is to empower food manufacturers in India by leveraging technology and building efficient and standardized processes. Consequently, brands and consumers will have access to premium products and ingredients at affordable prices,” said Rahul Ratan, Co-Founder and CEO of Suite42.
Despite the rapid increase in demand for branded food products, most food brands in India struggle with reliable manufacturing. At the same time, India has more than 40,000 food processing units that suffer from multiple inefficiencies including low capacity utilisation, lack of quality standardization, high wastage, and limited access to working capital financing.
Start-ups in India receive $885 m total funding in August 2022Beenext, LetsVenture, Accel, and Blume Ventures are the top investors in August this year
Suite42’s B2B food processing platform is working to solve these long standing issues, offering complete contract manufacturing solutions such as identifying trusted manufacturing partners, enabling fair price discovery, reducing the cost of food processing, product development, ensuring quality standardization, lower minimum order sizes and optimizing logistics. For the food processors, Suite42 is aggregating demand, driving better capacity utilisation, and facilitating low-cost access to working capital.
Jinesh Shah, the Managing Partner of Omnivore, said, “The sector is highly unorganised with deep inefficiencies. Less than five per cent of India’s agricultural output is processed, preventing realisation of profits across the value chains. We are excited to see Suite42 revitalize the food processing space in India.”
Vinit Bhansali, Senior Vice President at Orios Venture Partners, said, “Suite42 is building a platform to digitise the back end of a food brand from procurement to packaging. The team is targeting a massive TAM and manages the entire supply chain for the brand. We are excited to partner with the team in their endeavour to make food processing more efficient.”