The Health Factory, a pioneering health-focused bread brand, has successfully secured $3.5 million in seed funding, spearheaded by Surge, the scale-up initiative of Peak XV for early-stage startups. Prominent angel investors, including Kartik Mehta, Ali Tambawala, and Sunil Tulsiani, also contributed to this funding round.
With this investment, The Health Factory aims to enhance its product development and R&D capabilities, paving the way for the introduction of new product lines. The company plans to expand its retail footprint across both traditional and modern trade channels while improving its logistics and operational technologies.
Vinay Maheshwari, the founder of The Health Factory, expressed enthusiasm about the investment, stating, “This funding will empower us to penetrate new markets with our health-oriented products. We have garnered interest from various tier-1 and tier-2 cities, allowing us to broaden our reach and make healthier options available to more consumers.”
Founded in 2018 by Maheshwari and Mohit Sankhala, The Health Factory specializes in producing protein bread, vegan protein bread, and zero maida bread, all of which are free from chemicals and preservatives. The brand’s products are currently accessible in cities like Mumbai, Pune, Bengaluru, Delhi, Chandigarh, Ahmedabad, Lucknow, Hyderabad, and Chennai, through rapid delivery platforms such as Zepto, Swiggy, Instamart, and Blinkit.
This funding round coincides with the surge in quick commerce and an increasing demand for direct-to-consumer brands, spurring considerable investor interest in early and mid-stage D2C companies. The Health Factory has seen a remarkable 65-fold increase in sales over the past two years and aims to further penetrate tier-1 and tier-2 cities to satisfy the rising demand for healthier bread alternatives.