In a significant move signaling its financial turnaround, packaged foods and beverages company Wingreens Farms has initiated plans to raise up to ₹200 crore. The company, backed by prominent investors like Peak XV Partners and Investcorp, has appointed investment bank JM Financial to manage the capital raise, according to sources familiar with the development.
Turnaround Strategy Gains Momentum
The fundraise comes at a pivotal time for Wingreens, as the company executes a robust plan to improve its unit economics and drastically reduce losses. The current fiscal year is expected to be a milestone, with the company projected to achieve net profit break-even. One source indicated that the fundraising round, expected to be in the range of ₹150-200 crore, will be purely primary. Existing investors are likely to hold their stakes, anticipating a potential public listing within the next two to three years.
Arjun Srivastava, founder and director of Wingreens, confirmed the plans. In a statement, he revealed that the business has been EBITDA profitable for the last three to four quarters and is growing profitably with revenue growth of about 30% compared to the previous year. The company aims to become Profit After Tax (PAT) positive in the current financial year (FY25). The proceeds from the new fundraise will be channeled towards both organic expansion and strategic acquisitions.
Brand Portfolio and Financial Trajectory
Founded in 2011 by Arjun and Anju Srivastava, Wingreens has built a portfolio focused on minimally processed foods. Its product range spans dips, spreads, sauces, mayonnaise, snacks, breakfast cereals, wheat pastas, juices, beverages, and milkshakes. The company operates under four key brands: Raw Pressery (acquired), Wingreens Farms, Wingreens Harvest, and Saucery (acquired). It also acquired the snacking brand Postcard.
Financial filings show a story of consolidation and improvement. In FY24, Wingreens reported consolidated revenue of ₹260 crore, a decrease from ₹311 crore in FY23. However, its losses narrowed dramatically to ₹65 crore from a steep ₹180 crore in the previous year. The company is yet to file its FY25 financial statements. The journey hasn't been without challenges; the auditor had previously flagged concerns about Raw Pressery's ability to continue as a going concern. In response, Wingreens has expanded the brand's portfolio to include energy drinks and iced teas and has implemented restructuring measures to curb losses.
Navigating a Crowded FMCG Landscape
Wingreens is stepping up its growth plans in India's massive and competitive Fast-Moving Consumer Goods (FMCG) market. The sector generated $245.39 billion in revenue last year and is projected to reach $615.87 billion by FY27. The company competes with brands like Veeba, The Good Bean, Farmley, and Two Brothers Organic Farms across various categories.
Kartik Ganpathy, founding partner at law firm CMS INDUSLAW, noted that the market is crowded but investor interest remains strong. "Investor interest in Indian FMCG brands in dips, spreads and juices is driven by convenience, urbanization, premiumization, and the ability to build multi-brand platforms," he said. He added that future growth for such brands will come from category extensions, tapping into new sales channels like quick commerce and direct-to-consumer (D2C), and strategic bolt-on acquisitions.
With the new capital infusion and a clear path to profitability, Wingreens Farms is positioning itself for a significant next chapter, with its sights firmly set on a public market debut between the end of FY28 and the first half of FY29.
