Consumer products startup Mosaic Wellness raised $10 million in its first institutional funding round from Matrix Partners India, Sequoia Capital India and SAIF Partners. The startup is yet to launch its products.
The round saw the participation of Cred founder Kunal Shah, Citrus Pay founder Jitendra Gupta, Jaydeep Barman, founder of Rebel Foods, and Eight Roads Ventures managing partner Raj Dugar, among other HNIs (high networth individuals).
The Mumbai-based startup will use the capital from this round to hire talent and focus on the research and development of new products, according to a statement.
Founded this year by Revant Bhate and Dhyanesh Shah, both former venture capitalists with Kalaari Capital and Eight Road Ventures respectively, the startup plans to launch its digital-first brands next year.
“We see a large opportunity to create solution-oriented, consumer brands in a digital India, where businesses will now be built consumer-first rather than category-first. We are building an enterprise that aims to re-imagine a consumer’s experience, right from product design to discovery to purchase to post-purchase engagement,” said Bhate.
Prior to Kalaari Capital, where he looked at consumer investments for the venture capital firm’s accelerator programme KStart, Bhate was at Rebel Foods where he was involved in building out its cloud kitchen brands. Shah drove investments in the consumer and healthcare sectors at Eight Roads. The founders were colleagues in their first jobs at Oracle 15 years ago and remained friends over the years.
“At the confluence of our theme of backing the trend of new D2C (digital to consumer) brands and experienced founders, we are privileged and excited to partner with the pedigreed and experienced team of Revant and Dhyanesh… in building a large D2C business in India,” Matrix managing director Avnish Bajaj said.
For Matrix, the investment in Mosaic Wellness marks the Mumbai-based firm’s fifth bet on the consumer brands sector including &Me and Country Delight.
Matrix isn’t the only venture capital firm in India that has lately had a focus on homegrown consumer brands, especially brands that leverage technology in a significant manner in their operations. Earlier this month, Bengaluru-based consumer sector focused firm Fireside Ventures raised $60 million as part of initial commitments for its second India-specific fund. In September this year, Wipro Consumer Care and Lighting launched a fund focused on such startups and recently announced its first deal when it picked up a stake in lifestyle products brand Happily Unmarried.