Deepak's Musings #171: 🛍️ Indians spending more on meat, health and holidays

📉 Volume declines continue for the CPG giants

Author

Deepak Shahdadpuri
May 27, 2025

I am interested in all things consumer and insurgent brands. In my newsletter, I share what I read, think about, and reflect upon. You can follow me on Twitter at @dishahdadpuri or DSG Consumer Partners at @dsgcp.

p.s. You can click any summary link to read the full article from its source.

Anveshan raises INR 48 crore in Series A funding

🌱 Portfolio Update: Farmley welcomes L Catterton to the cap table as the company expands distribution

Farmley has been shaking up India’s snack category with new flavours, new occasions, and innovation in packaging. Awe-inspiring 55% annual revenue growth over the past two years, reaching ₹370 crore in FY25 while maintaining profitability, Farmley is a case study in capital-efficient growth.

Snack brand Farmley raises $40 million in funding led by L Catterton

According to cofounder Abhishek Agarwal, the round comprised 70% primary capital and remaining secondary sales by early stage investors along with Esops. The funds will be used for capital expenditure, expanding distribution channels across India, and boosting exports.

🤝 Portfolio Update: Wipro Consumer leads latest funding round at Anveshan

Always special when a DSG Consumer Partners LP invest in one of our portfolio companies. One of our missions is to work with leading strategics as they start their journey, interacting with insurgent brands. In this case, we have the pleasure of welcoming Wipro Consumer Care to the Anveshan family.

Anveshan Bags INR 48 Cr In Series A Funding

Anveshan has secured INR 48 Cr (around $6 Mn) in a Series A funding round led by Wipro Consumer Care Ventures.

🏢 Portfolio Update: Stayvista launches new product for the urban city market

With Vista Residences, StayVista is redefining urban stays —boutique, serviced accommodations designed for modern travellers seeking the comfort of home with hotel-like convenience.

Stayvista launches Vista Residences

Vista Residences caters to urban travellers seeking stylish, serviced accommodation for short and extended stays.

🏅 Portfolio Update: Anshita Mehrotra makes the 30 under 30 Asia 2025 List

I am thrilled that Anshita Mehrotra, founder and CEO of DSGCP portfolio company Fix My Curls, has been recognised on the prestigious Forbes 30 Under 30 Asia 2025 list. At just 25 years old, Anshita has built her specialised curly hair care brand, transforming how India's underserved curly-haired consumers care for their natural texture. Since launching Fix My Curls in 2019 from her college dorm at age 19, Anshita has created a product line and a community-driven movement that's reshaping beauty standards and helping thousands embrace their natural curls.

Anshita Mehrotra

Looking for an India-made product to pamper her curly hair led Anshita to create Fix My Curls, a niche haircare brand that she says pulled in an estimated $2.8M revenue for the fiscal year ended March.

🐿️ Portfolio Update: Pip & Nut’s 2024 Impact Report and its new chocolate hazelnut spread and its

UK’s (and my) favourite nut butter brand has just launched a BFY chocolate hazelnut spread. With only one-sixth of the sugar in Nutella, everyone will be talking. It is amazing to see the innovation from the Pip & Nut team in London.

By the way, Pip & Nut just released its 2004 Impact Report. At DSGCP, we take sustainability seriously and work with our portfolio companies on their journey to make an impact. Pip & Nut does one of the best jobs in this respect. Those interested can access the full report here.

Pip & Nut takes on Nutella with new Chocolate Hazelnut Spread

The spread contains less than one-sixth of the amount of sugar found in Nutella

This year’s edition explores the powerful resurgence of seasonality in our food choices, blending tradition with innovation and grassroots wisdom with global flair. From ingredient-driven storytelling and immersive dining experiences to the rise of mindful snacking and regional revivalism, the report has many tasty bites for founders building insurgent food and beverage brands.

The report can be downloaded here.

🔥 QCom: What is going on?

Latest snippets from the crazy world of hyper-competitive QCom.

Yes, QCom has altered consumer behaviour and shopping habits. Yes, I was mistaken about adoption when the service first commenced. I use it nearly daily whenever I am in India. However, the business model remains a work in progress for all stakeholders, including the platform, the brands, the consumers, and the delivery agents. It is among the most frequently asked questions when I meet LPs and others in Europe and the USA.

​Inside Flipkart’s big bet on QCom and why Kabeer Biswas calls it a 'brutal' business

Kabeer Biswas and Kanchan Mishra give an insider's view on Flipkart Minutes' essentials-led playbook as it scales rapidly to reach an 800-strong dark store network.

Zepto founder Aadit Palicha alleges smear campaign by rival CFO as quick commerce race heats up

Zepto's cofounder, Aadit Palicha, accused a rival company's CFO of orchestrating a smear campaign by spreading false information to investors and media.

Wild to mild: Zepto cuts spending, eyes private raise before IPO

Zepto had a monthly burn of Rs 660 crore in January and Rs 450-480 crore in March.

🛵💨 Most of the e-commerce business is moving towards quick commerce: Nestle India

Since we are on QCom, it was interesting that Nestle India’s CEO saw most of the e-commerce business moving to QCom.

Lion’s Share of Nestle India's Online Sales Comes From Quick Commerce

Narayanan discusses the impact of commodity inflation on business performance, outlines a cautious pricing strategy, and highlights the growing contribution of quick commerce platforms.

🛍️ Indians spending more on meat, health and holidays

India's consumer landscape is experiencing a significant transformation, with spending patterns reflecting evolving lifestyles and priorities. According to the National Account Statistics 2025, there has been a marked increase in expenditure on non-vegetarian food, health, and personal services, indicating a shift towards diverse dietary choices and a heightened focus on well-being.

😩 Declines in volume persist for the CPG Giants

For those who follow the quarterly earnings calls of the incumbent CPG companies, you must be used to the same news: consistent volume declines quarter after quarter. Kraft Heinz was among those who reported their sixth quarter of volume declines. For those who do not track the category as closely as I do, I suggest following Frederic Fernandez on LinkedIn. He does a superb job tracking the earnings and all trends relevant to CPG. His latest summary of Q1 results is below. How are the incumbents dealing with this? Some are resorting to M&A. Others are going back to organic growth. They are trying everything.

TLDR: Insurgent brands continue to gain share as they eat away at incumbents.

Kraft Heinz to explore ‘strategic transactions’ as sales decline

Kraft Heinz has seen total revenue decline for six straight quarters.

The return of volume decline - Frederic Fernandez

Q1 showed a broad-based volume decline across most verticals (except Beauty Personal Care) and FMCG companies (55% of the world largest listed FMCG companies).

📰 Other consumer-related news: deals, funding, branding and more

Fashion delivery startup Slikk raises $10 million led by Nexus Venture Partners

Fashion QCom startup Slikk has raised $10 million in funding led by Nexus Venture Partners, with Lightspeed also participating. The funds will support category expansion, faster returns, and geographic growth.

D2C handbag retailer Miraggio raises $6.5M for its store dreams

D2C player Miraggio plans to use the proceeds for its exclusive store dreams, hiring senior leadership, expanding categories, and enhancing its technology.

Gummy Vitamin Maker Grüns Hits $500M Valuation

It’s in good form.

Troovy raises Rs 20 Cr in pre-Series A round led by Fireside Ventures

Troovy, a kids' nutrition-focused food brand, has raised Rs 20 crore ($2.3 million) in its pre-Series A round led by Fireside Ventures. Other investors include Sharrp Ventures. Snippets

Susquehanna, Fireside Back The Good Bug in INR 100 Cr Round

The Mumbai-based startup will deploy the fresh capital towards ramping up R&D in microbiome science, scaling clinical trials, expanding its distribution footprint, and boosting brand awareness among consumers and healthcare professionals.

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