With the backing of Desai Brothers Group, profitable D2C brand Open Secret has put in place a ₹50 crore raise to take its healthy snacking business to the next level.
The company is targeting an annual recurring revenue (ARR) of ₹1,000 crore and is now putting money behind AI investment and an offline push to make it happen.
India’s market for healthy snacks is changing fast as shoppers want the kind of taste that does not come at the expense of good nutrition. In a D2C food sector where rapid expansion is often the order of the day, few have been able to pair that with sound profitability. Open Secret intends to show they can be done in tandem.
The fresh capital, a combination of equity and debt, will be put to work fortifying the brand’s retail footprint and building out AI capabilities for the supply chain. It is also fuel for product innovation.
“Open Secret 2.0” is how founder Ahana Gautam puts it – a way of scaling sustainably. Having already been profitable while passing the ₹200 crore ARR mark, the plan is to quintuple that figure in three years.
From Digital to Omnichannel
The brand made its name as a digital-first operation, winning over a loyal following with cookies and nuts that are as indulgent as they are good for you. But there is a larger opportunity ahead.
Open Secret is moving beyond its 500 or so existing outlets to establish a more formidable presence in offline retail. The aim is to be with the consumer whether he or she is on the company website, a quick commerce app or in a traditional store. This omnichannel approach is meant to make healthy snacking a convenient, everyday affair for Indian families rather than a niche online purchase.
Innovation and Expansion
The new funds will be instrumental in this. One area of focus is the savoury side of things; with chips and namkeen being such a part of Indian consumption, Open Secret wants to diversify its portfolio in those higher-volume categories without straying from its healthier ethos. The money will also underwrite nationwide distribution across general and modern trade to put the brand in front of more eyes.
AI for Smarter Operations
Growth of this magnitude requires operational discipline. To that end, the company is turning to artificial intelligence to run a leaner operation.
AI will be deployed to forecast demand by region and format, optimise production and manage inventory in a way that curbs wastage on items with a short shelf life. As the offline network grows, it will aid in route planning. Consumer data will further inform what goes into future product launches.
For a brand looking to grow fivefold in a matter of three years, efficiency is as much a concern as top-line numbers.
“We want to get to ₹1,000 Crore ARR in three years and still be profitable. That is the idea behind Open Secret 2.0,” said Gautam.
It is an approach that sets them apart in an industry where many a startup will put growth before financial prudence. With India’s demand for better food options on the rise, this latest round of funding is as much a statement of strategic intent as it is a capital event, one that will see Open Secret evolve into a mainstream FMCG brand powered by technology and offline reach.
