Scandalous Foods, a Nashik-based startup reinventing Indian sweets for the business-to-business (B2B) market, has raised ₹2 crore in its ongoing seed funding round. The investment is led by New Age India Fund, with the startup currently reviewing three additional term sheets from institutional and family office investors.
This follows a successful ₹3 crore pre-seed round in February 2024, backed by the Indian Angel Network and other strategic investors.
Scaling Production and Distribution for Food Service Industry
The newly raised capital will be used to enhance production capabilities and strengthen distribution networks across India, especially in the small and medium enterprise (SME) hotel, restaurant, and catering (HoReCa) sector. Scandalous Foods aims to become a go-to brand for ready-to-serve, preservative-free Indian sweets tailored for the food service ecosystem.
Redefining Indian Mithai with Shelf-Stable Innovation
Founded in August 2022 by Sanket S, Scandalous Foods is addressing a key gap in the sweets market—providing single-serve, preservative-free desserts with a shelf life of up to six months, optimized for cloud kitchens and on-demand consumption.
“At Scandalous Foods, we’re not just selling Indian sweets—we aim to become the country’s largest impulse mithai brand within the restaurant and catering space,” said Sanket, co-founder of Scandalous Foods.
Rapid Growth and Market Penetration
The startup has demonstrated 7x growth in 2024, having sold over 2 million units across nine Indian cities. It currently serves nearly 1 million unique customers through a network of 27 B2B clients and more than 1,500 distribution points.
Upcoming Product Launches and Market Diversification
Scandalous Foods plans to launch 2–3 new product formats, including mithai bars and sachet-based offerings, designed for guilt-free, impulse indulgence. The brand is also targeting expansion into new sub-channels, while maintaining a strong focus on SME HoReCa and catering segments.
Long-Term Vision: B2B2C and Direct-to-Consumer
While currently operating in the B2B space, Scandalous Foods is gearing up to scale into B2B2C and direct-to-consumer (D2C) verticals, signaling a broader growth trajectory as it continues to innovate within the traditional Indian sweets industry.