Riga Foods, others backed over ₹6 Cr secured by Indian sweets brand Khoya

Khoya, an Indian luxury sweet brand owned by Lone Star Hospitality Pvt. Ltd. in Delhi, has raised $6.15 million in a pre-seed funding round led by Ritu Dalmia’s Riga Foods. The family office of Max Group chairman Analjit Singh invests in Riga. Other investors, including Priya Paul, took part in the round.

Khoya creates, produces, and sells directly to consumers high-end traditional mithai and luxury confectionery products. Luxury mithais, a concept that was only recently introduced about five years ago, can range in price from 20,000 to 30,000 per kilogram.

The company intends to use the money to expand into new categories of related consumer products as well as to develop new products. It will increase its retail presence in additional Indian metropolises and enter foreign markets.

The business sells its goods online, has a few stores in retail establishments and hotels, and is in competition with Gur Chini, Arq Mithai, Meethi, Bombay Sweet Shop, among others.

According to Sid Mathur, the founder of the business, Khoya was established in 2016 with the goal of making mithai “exciting again” through the use of natural ingredients. Each item is expertly handcrafted, tastefully arranged, and exquisitely packaged. According to the business, some of its customers include Louis Vuitton, Cartier, Good Earth, Lexus, and others.

Mathur said, “Khoya was a passion project, and we took our time to build it. We dived deep into the history, travelled, searched for ingredients, worked hard on recipe development, and spent months on the packaging. The product spoke for itself, and Khoya has grown organically through only reinvestment of profits. With this capital raise, we will be able to take the brand to a new level, expanding our kitchens, teams & distribution both in India as well as internationally.”

Co-founder of Riga Foods, Dalmia said: “For me, this brand has always been the benchmark of luxury mithai, and we are thrilled to be part of their journey. With obvious synergies of catering, kitchens, and restaurants, we have a head start on this relationship, and can’t wait to see this company grow.”

Industry forecasts predict that by 2028, the organized Indian market for premium gifts and sweets will be worth about 15,000 crores.