Sixth Sense Ventures, an early-stage consumer-sector-focused fund, is in talks to buy a small stake in condiments and sauce company Veeba Food Services Pvt. Ltd, in a deal valuing the company at over $100 million (about Rs. 650 crore).
Incorporated in 2013, Veeba Food supplies sauces and dips to restaurants and fast-food chains including KFC, Pizza Hut, Burger King, Taco Bell, Domino’s and Starbucks. The company was started by Viraj Bahl, the former head of packaged foods firm Fun Foods, which was sold to German food maker Dr Oetker in 2008.
The transaction, which will value the company at around Rs. 700-800 crore, is expected to be closed soon.
Veeba Food has been tweaking its business model from a 100 per cent business-to-business (B2B) supplier of condiments and sauces to launching several products under its own Veeba brand through modern retail and online channels. They are attracting significant investor interest given their focus on both the B2B and B2C segments.