The Health Factory, a health-focused bread brand, has raised $3.5 million in seed funding led by Surge, Peak XV’s scale-up program for early-stage startups.
The round also saw participation from angel investors including Kartik Mehta, Ali Tambawala and Sunil Tulsiani.
Earlier in August 2022, the Mumbai-based brand had raised a ₹2 crore seed round led by Venture Garage, Vikas Nahar, Happilo, and other marquee angels.
The raised fund will be used to accelerate product development and research and development (R&D) initiatives, enabling the creation of new product segments. The company also plans to broaden its retail presence through both modern and traditional trade channels.
The investment will also enhance logistics and operational technologies to streamline their processes, ensuring smooth scaling.
With a 65X increase in sales over the past 24 months, the Health Factory also plans to expand its product line, enhance its marketing efforts, and increase its distribution channels.
“We are thrilled to have the backing of Peak XV’s Surge along with Kartik Mehta, Ali Tambawala, and Sunil Tulsiani as we enter our next phase of growth. This investment will enable us to disrupt additional markets with our health-focused offerings. We have received interest from numerous Tier I and Tier II cities, and this funding will allow us to expand our reach to more pin codes, ensuring our products are accessible to more consumers seeking healthier options,” Vinay Maheshwari, Founder of The Health Factory, said.
Founded in 2018 by Vinay Maheshwari, Mohit Sankhala, and bakery expert Jos Vast, the company makes preservative-free products, including Protein Bread, Vegan Protein Bread, and zero maida bread.
The brand’s products are now available in major cities, including Mumbai, Pune, Bangalore, Delhi, Chandigarh, Ahmedabad, Lucknow, Hyderabad, and Chennai, through quick commerce platforms such as Zepto, Swiggy Instamart, and BlinkIt.
