Indian consumer food brand Yu has raised $6.5 million in a series B funding round, which could help the firm strengthen its product portfolio. 

According to a press statement, the funding round was led by ace investor Ashish Kacholia and the Asian Paints Promoter Group. 

The funding round also provided an exit to some of its seed stage investors who have successfully secured over 4x return on their investment. 

Targeting Expansion

The press statement noted that the financial backing will be deployed to ramp up distribution and strengthen its existing food portfolio. 

The fund will also help the company expand its beverage range with newly launched fresh fruit juices. 

Yu has secured funding at a time when the Indian startup landscape is receiving widespread attention from investors from various parts of the globe. 

According to Inc42's report, fundings for start-ups in India in the first three quarters of this year reached $8.7 billion, representing a rise of 20 percent compared to the same period in the previous year. 

Moreover, the number of deals in the first nine months also grew to 766 compared to 691 in the first three quarters of 2023. 

Yu: All You Need to Know

Co-founded in 2021 by Bharat Bhalla and Varun Kapur, Yu is an omni-channel consumer brand that offers a range of instant food and beverage products. 

The company initially launched its operations with instant cup noodles and pasta but has since expanded to ready-to-cook noodles, pastas, desserts and halwa. 

Yu also boasts a presence of 7,500 physical stores across India and its products are also available at quick commerce and e-commerce platforms across the nation. 

The company has also expanded its operations to South Africa recently, with the presence of more than 2,000 stores.