Shraddha (name changed) expected the familiar taste of chocolate burfi when she took a bite — instead, her palate was met with sea salt, rich Belgian chocolate, and a whisper of espresso. “It’s just like the mithai Papa used to bring from (local sweetmeat seller) Anand khakha — only fancier,” she says with a laugh.
Across Indian cities, traditional treats are getting a stylish upgrade at the hands of a host of startups such as India Sweet House, GoDesi, and Hatti & Giraffe.
Anand Ramanathan, partner—consumer products and retail sector leader, Deloitte India, explains that the resurgence of interest in mithai among younger consumers is fuelled by a blend of cultural nostalgia and modern reinterpretation.
“Mithai, traditionally associated with festivals and family gatherings, is being rediscovered as a lifestyle indulgence. Startups are tapping into this sentiment by offering artisanal versions of classic sweets, often with a contemporary twist in flavour, presentation, and packaging.
“The rise of social media and influencer-driven content has also made mithai more visible and aspirational, especially when positioned as a premium, clean-label product that aligns with evolving health and aesthetic preferences,” he says.
The total addressable market (TAM) for the mithai industry in India is projected to reach ₹84,300 crore by 2025.
Demand typically surges during festivals, which account for nearly 70 per cent of annual sales.
Valued at ₹6,229 crore in 2023, the packaged sweets segment is expected to touch ₹25,970 crore by 2030.
Market intelligence platform Tracxn reports that India’s new-age sweets startups secured over $43.12 million funding between 2020 and 2025. Funding peaked in 2024 at $40.7 million across three rounds. It stands at $152,644 so far this year.
Homemade-plus
Hatti & Giraffe, a Mumbai-based luxury mithai and namkeen brand, was launched in 2019.
“Our initial products were whatever I grew up eating at home. We started with the anti-dessert laadu, made of dry fruits. It has no refined sugar and the sweetness comes from dry dates and organic jaggery. Then followed the Crackling Besan Barfi, one of our most popular products, made with freshly grated coconut, organic jaggery, and a dash of fresh ginger. The third was the Konkani Coconut Wadi — something that’s hard to find even in sweet shops,” says Shrikar Bhave, a co-founder.
The recipes — the first two from his mother and the third from his wife and co-founder Girija’s grandmother — were given a tweak, he says. Of their 15 SKUs, which are sold countrywide, 12 are designed for global shipping with a longer shelf life.
Vinay Kothari, founder of GoDesi, believes that the entry of global packaged food brands triggered a change in consumer behaviour.
Indian or desi products from local players could not match the branding and consumer experience of these global players, he says.
“We wanted to shine a light on the unorganised cottage industry. Some regional products are preservative-free, have no artificial colouring or flavours, and are suited to the Indian palate. But they were not standardised. Our mission statement is to make desi popular among Gen Z and urban consumers,” he says.
The company’s flagship product is Desi Pops — an Indian take on the lollipop, made with jaggery and fruit pulp, minus added colours. GoDesi produces 60 lakh pops a month.
Other products include single-serve barfi, coconut-and-jaggery ladoo, and a chocolate-like kaju katli bar.
India Sweet House set out to revive traditional delicacies that were disappearing from urban markets. “Our recent launch of chandrahara exemplifies this. For decades, this sweet was confined to an exclusive circle, with food connoisseurs making pilgrimages to experience it. We’re expanding that access to bridge the gap between heritage recipes and contemporary consumers who value tradition but also expect quality and accessibility,” says Shwetha Rajashekar, a co-founder of India Sweet House.
Echoing this, GoDesi’s Kothari says the differentiation startups offer vis-a-vis legacy brands is convenience, especially through online sales.
Showcasing heritage
Sameer Seth, founder and CEO of Hunger Inc Hospitality — the firm behind popular restaurants such as The Bombay Canteen, O Pedro, Veronica’s, and Papa’s — says Bombay Sweet Shop was launched to offer traditional Indian sweets reimagined with a unique twist.
The brand’s most popular product is a chocolate box inspired by sohan halwa. It features a thin butterscotch layer that captures the essence of the traditional sweet, enrobed in dark chocolate, sea salt, and roasted almonds.
Katli Bites has a base of kaju katli, topped by a rich dark-chocolate ganache.
Located in Mumbai’s Byculla, the firm’s 5,000 sq ft manufacturing facility is open to visitors, who can watch the sweets being made, shop, and sample products fresh from the kitchen.
“We travelled the length and breadth of India, understanding how traditional mithai is made... We try to bring that storytelling to life, including the ingredients used, and the people behind it,” Seth says.
Selling points
GoDesi’s products are available on quick commerce and e-commerce platforms, offline stores, and at 50 kiosks across Bangalore. Nearly 40 per cent of its sales are offline.
Bombay Sweet Shop has dark stores and physical stores in Mumbai, and ships nationwide.
India Sweet Shop’s omni-channel approach includes 45 stores across Karnataka. The Indian diaspora forms a significant chunk of its customer base, alongside corporate and other bulk orders, and wedding and festival gifting.
Fund flow
In October last year, India Sweet House secured $1 million pre-IPO funding from Viney Equity Market LLP.
GoDesi raised ₹41 crore from Aavishkaar Capital in a Series B round in May 2024. Two years earlier, it had raised ₹31 crore from Rukam Capital, Roots Ventures, and DSG Consumer.
Archana Jahagirdar, founder and Managing Partner, Rukam Capital, says, “The Indian sweets and snacks category is undergoing a transformation, with a strong potential for value creation. While freshness, scalability, and logistics remain challenges, brands that invest early in backend efficiencies, supply chain innovation, and product R&D are better placed to scale sustainably.