With New Age India Fund’s support, Scandalous Foods raised money in ongoing Seed round

The New Age India Fund is leading an ongoing seed funding round for Scandalous Foods, a business-to-business (B2B) Indian confectionery brand, which has raised Rs 2 crore. The startup is assessing the three term sheets it has received from different investors and a family office in order to close this round.

The business had previously raised Rs 3 crore in February 2024 from Indian Angel Network and other investors in its pre-seed funding round.

According to Scandalous Foods’ press release, the money will be used to boost the company’s next stage of growth by increasing production capacity and fortifying its SME HoReCa (Hotels, Restaurants, and Catering) distribution network.

Sanket S co-founded Scandalous Foods in August 2022 with the goal of empowering the restaurant industry’s sweets sector. It provides convenient single-serve sizes of preservative-free candies with a 6-month shelf life, all while maintaining a dedication to quality and innovation. presently a B2B business with plans to expand both B2B2C and B2C.

With an emphasis on cloud kitchens, Scandalous Foods intends to diversify into other food service markets. The brand will soon launch mithai bars and sachets to satisfy impulsive cravings without feeling guilty.

“At Scandalous Foods, we’re not just selling Indian sweets—we’re working towards becoming the biggest mithaiwala in the unplanned post meal impulse purchase space. This funding is a massive leap forward in our journey to make our sweets a staple in restaurants and catering menus across India. With bigger production, a stronger distribution network, and new products in the pipeline, we’re gearing up to bring our bold, delicious creations to even more people,” said Sanket S, co-founder of Scandalous Foods.

Over 2 million cups of Indian sweets were sold in nine cities in 2024, according to Scandalous Foods, which reported a seven-fold increase in sales. Through its more than 1,500 distribution channels and 27 business-to-business clients, the brand reaches almost one million distinct consumers.

Within its current markets, the Nashik-based startup intends to enter new sub-channels and launch two to three new products. Prioritizing key account HoReCa clients at first, it will now focus on caterers and SME HoReCa.