The Whole Truth, a Mumbai-based clean-label food brand, has raised $15 million in a Series C funding round. The round was led by Belgian investment fund Sofina, with participation from Z47, Peak XV Partners, and Sauce.VC. Previously, the company received investments from angel investors, including Nithin Kamath (Zerodha), Sriharsha Majety (Swiggy), and Jaydeep Burman (Rebel Foods). Founded by Shashank Mehta, a former Unilever marketer, the brand focuses on transparency and eliminating hidden sugars and artificial additives in packaged foods.
With this funding, The Whole Truth plans to expand its product offerings, enhance in-house manufacturing, and strengthen distribution channels. The company has doubled its revenue in FY24 to Rs 70.6 crore while significantly reducing losses. This marks a valuation increase to Rs 2,133 crore (~$256 million), a 3.5x jump from its previous valuation. The funding will be used primarily for business growth and product innovation.
1. The Whole Truth: Business Model and Operations
1.1 Working Model
The Whole Truth operates on a Direct-to-Consumer (D2C) model, selling its products directly to consumers via its website and major e-commerce platforms like Amazon and Flipkart. This approach ensures quality control, transparency, and cost efficiency by eliminating middlemen. The company’s clean-label products include protein bars, muesli, peanut butter, and protein powders, all free from preservatives, artificial flavors, and hidden sugars.
1.2 Revenue Model
The company generates revenue through multiple streams:
- D2C Sales: The primary revenue driver, with products sold via the brand’s official website.
- E-commerce Partnerships: Strong presence on Amazon, Flipkart, and other online marketplaces.
- Retail Expansion: Products available in premium supermarkets and select retail stores.
- Subscription Plans: Offering customers discounts on recurring purchases to drive repeat business.
2. Funding Background and Growth Journey
2.1 Past Funding Rounds
The Whole Truth has raised capital through multiple rounds:
- Series A (2021): The company secured initial funding from Peak XV Partners and Sauce.VC.
- Series B (2022): Raised $15 million, led by Zerodha’s Nithin Kamath and other investors.
- Series C (2024): The latest $15 million funding led by Sofina, valuing the company at $256 million.
2.2 Financial Performance
- Revenue doubled from Rs 36.7 crore in FY23 to Rs 70.6 crore in FY24.
- Losses reduced from Rs 35.5 crore to Rs 23.8 crore in FY24.
- Increased market share within the clean-label food industry.
3. The Vision Behind The Whole Truth
3.1 Founder’s Background
Shashank Mehta, a former Unilever marketer, founded The Whole Truth after his personal struggle with obesity. He was frustrated by misleading labels on so-called “healthy” foods and decided to create a brand that offers complete transparency. His goal is to restore trust in packaged food by ensuring that consumers know exactly what they are eating.
3.2 Mission and Philosophy
The Whole Truth’s mission is to eliminate misinformation in the food industry. Their philosophy revolves around:
- Transparency: Clearly stating all ingredients on packaging.
- No Artificial Additives: Eliminating preservatives, refined sugars, and unhealthy oils.
- Real Ingredients: Using natural, whole foods as core ingredients.
4. Market Impact and Expansion Plans
4.1 Expansion into New Categories
With fresh capital, The Whole Truth aims to:
- Expand its product portfolio beyond protein bars and powders.
- Strengthen manufacturing capabilities to scale production.
- Enhance supply chain efficiency for wider market reach.
4.2 Competitive Landscape
The Indian health food sector is highly competitive, with brands like Yoga Bar, Kapiva, and True Elements operating in a similar space. The Whole Truth differentiates itself through its commitment to ingredient transparency and a strong D2C presence.
4.3 Consumer Trends and Market Demand
With increasing awareness about healthy eating, India’s clean-label food segment is witnessing rapid growth. Consumers are now more health-conscious, driving demand for products with minimal processing and natural ingredients.
5. Learning for Startups and Entrepreneurs
5.1 Importance of Transparency
Startups should focus on building consumer trust by being transparent about their products. Clear communication builds brand credibility.
5.2 Strategic D2C Approach
Direct-to-Consumer models allow brands to establish stronger relationships with their customers while maintaining control over pricing and distribution.
5.3 Scaling with Purpose
While expansion is critical, maintaining product quality and staying true to core values should remain a priority for any startup.
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