The Health Factory, a brand focused on healthy bread, has raised $3.5 million in a seed funding round led by Surge, a scale-up program from Peak XV for early-stage startups. The round also saw participation from angel investors such as Kartik Mehta, Ali Tambawala, and Sunil Tulsiani.
The Health Factory will use this new funding to boost its product development and research and development (R&D). The bread company aims to create new healthy product segments, while also expanding its presence in general and modern trade channels. They plan to enhance their logistics and operational technologies to improve efficiency and reach more customers.
Focus on Expanding Presence
With growing interest from tier-1 and tier-2 cities, The Health Factory is planning to expand its retail presence across more regions in India. Vinay Maheshwari, founder of The Health Factory, said, “This investment will help us disrupt more markets with our healthy products. We’ve seen demand from many new locations, and this funding will help us reach more areas, ensuring people have access to healthier food choices.”
Founded in 2018 by Maheshwari and Mohit Sankhala, The Health Factory produces protein bread, vegan protein bread, and zero maida bread. They proudly state that their products are free from chemicals and preservatives, making them healthier options for consumers.
Availability Across India
Currently, The Health Factory’s products are available in major cities like Mumbai, Pune, Bengaluru, Delhi, Chandigarh, Ahmedabad, Lucknow, Hyderabad, and Chennai. They are sold through quick commerce platforms such as Zepto, Swiggy Instamart, and Blinkit, making it easy for customers to order and receive healthy bread quickly.
The Health Factory’s success comes at a time when there is rising demand for direct-to-consumer (D2C) brands, especially for quick commerce deliveries. Investors are showing more interest in these types of companies as they continue to grow. In fact, The Health Factory has seen its sales increase 65 times over the past 24 months.
With this new funding, the brand plans to further expand into tier-1 and tier-2 cities, providing more consumers with healthy bread options.
