Scandalous Foods, a Business-to-business (B2B) Indian sweets brand has raised ₹2 crore in an ongoing seed funding round led by New Age India Fund.
The Nashik-based brand said it is currently evaluating three additional term sheets from institutional and family office investors to close the round.
Previously in February 2024, Scandalous Foods had raised ₹3 crore in its pre-seed funding round from Indian Angel Network and others.
The fresh funds raised will be used to expand its production capacity and strengthen its SME HoReCa (Hotels, Restaurants, and Catering) distribution network.
With 50% of the funds allocated to scaling production, Scandalous Foods is gearing up to meet the rising demand that has driven consistent month-on-month growth. The remaining 50% will focus on expansion efforts, with 30% dedicated to building a robust SME HoReCa distribution network—targeting smaller restaurant chains with fewer than five outlets—and 20% directed toward online and offline marketing initiatives.
Founded in August 2022 by Sanket S, Scandalous Foods offers sweets with preservative-free for the restaurant sector. Its products come in single-serve portions with a shelf life of six months, tailored for cloud kitchens and spontaneous dessert consumption. Currently a B2B company with aspirations for B2B2C and B2C expansion.
The company has experienced 7x growth in the calendar year 2024, selling over 2 million cups of Indian sweets across nine cities. With a reach of nearly one million unique consumers through its 27 B2B clients and 1,500+ distribution points.
Beyond scaling its footprint, the brand is introducing 2-3 new products and expanding into new sub-channels within existing markets. Initially focused on key account HoReCa clients, Scandalous Foods will now target SME HoReCa and caterers, further strengthening its presence in India’s evolving F&B landscape.
The company is focused on achieving ₹20 crore+ revenue within the next year, while also preparing to expand into the Middle East by 2026. Additionally, Scandalous Foods will introduce branded Indian sweets under its B2B2C label, FAAD, within the HoReCa channel, reinforcing its long-term vision for growth.
“At Scandalous Foods, we’re not just selling Indian sweets—we’re working towards becoming the biggest mithaiwala in the unplanned post meal impulse purchase space. This funding is a massive leap forward in our journey to make our sweets a staple in restaurants and catering menus across India. With bigger production, a stronger distribution network, and new products in the pipeline, we’re gearing up to bring our bold, delicious creations to even more people. The love we’ve received so far has been incredible, and this is just the beginning! Also, we truly appreciate the promptness and professionalism shown by New Age India Fund in transferring the funds. It’s a great start to what we believe will be a strong and supportive partnership,” said Sanket S., Co-Founder of Scandalous Foods.
Avinash Kalia, Chief Investment Officer, New Age India Fund, said, “At our fund, we actively seek out founders with the vision and capability to execute and scale in unique, high-potential niches. Sanket and the team behind Scandalous exemplify this perfectly. With prior experience in the food industry, they’ve identified a compelling niche and are poised to capitalize on it. Sanket is a driven entrepreneur with a clear roadmap for where Scandalous is headed, and his infectious enthusiasm makes it easy to believe in that vision. We’re excited to partner with them on this journey.”
