TagZ Foods
Overview
TagZ Foods is a direct-to-consumer (D2C) snacking brand based in Bengaluru, India, known for its innovative popped potato chips, gourmet dips, and cookies. Founded in 2019 by Anish Basu Roy and Sagar Bhalotia, the company aimed to offer healthier alternatives to traditional snacks. Despite its initial success, the brand faced significant operational challenges and was acquired by Reliance Consumer Products for INR 28 crore (approximately $3.5 million USD) in 2024.
Recent Developments
- November 2024: Reliance Consumer Products, a subsidiary of Reliance Retail, acquired TagZ Foods for INR 28 crore in what is described as a distress sale due to operational hurdles faced by the startup. This acquisition is part of a broader trend of consolidations in India's D2C sector as larger corporations acquire struggling niche brands.
- May 2023: TagZ Foods raised $2 million in Pre-Series A funding led by investors such as 9 Unicorns, Dexter Angels, Agility Ventures, and others. The funds were intended to expand manufacturing capacity and enhance marketing efforts.
- April 2023: Despite operational challenges, TagZ Foods reported a more than doubling of their annual revenue to Rs 23 crore in FY23, bolstered by a partnership with the Rajasthan Royals cricket team which significantly boosted sales.
- Early 2023: Former cricketer Shikhar Dhawan joined TagZ Foods as an investor and brand ambassador, further enhancing the brand's visibility and market reach.
- 2023: The company faced significant challenges, including halting production due to scalability issues, resulting in the disappearance of its products from retail and online marketplaces and subsequent staff exits.
- 2022: TagZ Foods introduced hemp-based cookies, expanding its product portfolio into new health-oriented snack options. This expansion was supported by investments from several high-profile investors, enhancing the company's focus on eco-friendly and healthier snacking options.
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2019 |
| Headquarters | Bengaluru, India |
| Founders | Anish Basu Roy, Sagar Bhalotia |
| Revenue | Rs 23 crore in FY23 |
| Net Loss | INR 10.7 crore in FY23 |
| Key Investors | 9 Unicorns, Dexter Angels, Agility Ventures, Shikhar Dhawan |
| Industry | Food & Beverage, Snack Foods |
| Number of Employees | 47 |
Early History
Founded in mid-2019 by Anish Basu Roy and Sagar Bhalotia, TagZ Foods emerged in the burgeoning Indian D2C market with a focus on providing healthier snacking options. The company gained visibility after featuring on the first season of "Shark Tank India," where it secured funding from prominent investors, enabling the start-up to aggressively expand its product offerings and market presence. The initial focus was on leveraging innovative food technology to create snacks that have fewer unhealthy components compared to conventional options, such as snacks that are low in fat and free from cholesterol and trans fats.
Company Profile and Achievements
TagZ Foods established itself as a pioneer in the Indian snacking industry by introducing popped potato chips, which are neither fried nor baked. Utilizing advanced food technology, the company crafted snacks that appealed to health-conscious consumers without compromising taste. Its product line encompasses a variety of flavors and includes companion products like gourmet dips and hemp cookies. The company operated through an omnichannel strategy; its products were available on e-commerce platforms such as Amazon, Swiggy Instamart, and Blinkit, as well as through offline retail stores.
Significant Milestones:
- Featured on "Shark Tank India," which marked its initial brand growth phase.
- Secured substantial investments from diverse investor groups, including celebrities like Shikhar Dhawan and Rannvijay Singh, in their funding rounds.
- Engaged in strategic sponsorship partnerships, notably with the Rajasthan Royals IPL team, to boost sales and brand visibility.
Current Operations and Market Position
Prior to its acquisition, TagZ Foods operated in a highly competitive snacking market, competing with established brands like Lays, Too Yumm, and Uncle Chips. The company distinguished itself by offering innovative, health-oriented snacks that resonated with urban Gen Z audiences across India. Despite its innovative approaches and initial success, challenges in scaling operations led to halted production and severe operational setbacks that ultimately resulted in its acquisition by Reliance Consumer Products.
TagZ Foods Founder
Anish Basu Roy, with extensive experience in sales and marketing from roles at global giants such as Nokia and Coca-Cola, co-founded TagZ Foods. His entrepreneurial journey prior to TagZ included starting Shotang, India’s first technology-enabled retail distribution platform. Roy's vision for TagZ was to fill the gap between taste and health in the snacking industry by leveraging innovative technology to offer healthier yet delicious snacking options.
TagZ Foods Revenue
In FY23, TagZ Foods reported an operating revenue of Rs 23 crore, showing significant growth from previous years, although it incurred a net loss of INR 10.7 crore, highlighting financial pressures and operational challenges which played a part in its acquisition by Reliance.
Conclusion
TagZ Foods revolutionized the snacking segment by offering innovative products designed to merge taste with health, appealing predominantly to the youth. Despite operational challenges and a competitive market landscape leading to its acquisition, TagZ Foods has shown substantial growth and has significantly impacted the Indian snacking industry. Moving forward, with the strategic backing and expansive resources of Reliance Consumer Products, the brand has the potential to reorganize, scale up operations effectively, and further solidify its market presence, potentially expanding beyond the Indian market.