Kaatil raises seed funding led by Prajay Advisors and wins Great Taste Award 2024

Kaatil, an Indian-chilli-focused hot condiments brand of Smerc Food & Beverages, announced that it has successfully raised an undisclosed amount in seed funding. The funding was led by Mumbai-based Prajay Advisors along with Shivaan Ghai and Romil Ratra from Mumbai’s Graviss Group. This announcement comes right after Kaatil won the Great Taste Award 2024 by the Guild of Fine Foods, U.K.

Kaatil, which boasts a robust pipeline of products in different categories, including Hot Sauces, Hot Ketchups, and Chilli Oils made of Indian chillies, plans to use the capital for expanding their product lines and presence through multiple national and international distribution channels including e-commerce marketplaces, quick commerce, and offline retail outlets. The company also plans to establish an independent B2B supply arm to cater to Restaurants, Hotels and Cafés.

Sagar Merchant, founder of Kaatil, said, “We are very excited to have this investment from Prajay Advisors & other strategic investors, who have demonstrated a very sharp acumen in understanding the food and beverage space. Our observation from the last five years indicates that India’s food consumption behavior has drastically evolved and people are now willing to experiment with new brands and products than ever before. Most importantly, they are constantly seeking alternative products to upgrade their pantry and have moved beyond the loop of purchasing the same products every month for the sake of traditional loyalty. Keeping in mind the palette of Indian consumers, we have curated the most flavourful hot condiments with different levels of heat, all made using Indian chillies. Our aim hereon is to reach consumers, who possess a strong liking for hot condiments, not only in India but also globally.”

Speaking on the announcement, Arjun Panwar, co-founder of Kaatil, said, “We are grateful to have raised this capital, which we plan to utilize for solidifying our presence and distribution, and expanding our product suite. Our goal is to also educate consumers on how these products fit into their everyday meals and can go well with all cuisines. We want to be their go-to partner for all the meals and in all their food choices. We also believe, our products can help uncover the story of Indian chillies to the world, which, by far, is lesser known to the people, despite being one of the biggest producers of distinct chillies.”

Dr. Prakash Mody and Jayendra Shah of Prajay Advisors, expressed, “We are very bullish about the category and are backing Sagar and Arjun for their varied experience and deep understanding of the market. Kaatil is perfectly poised to make a dent in the rapidly growing global condiments sector in India and the world.” Cignas from N. A. Shah Advisors LLP situated in Mumbai, acted as a transaction advisor to Prajay Advisors. Cignas is a niche professional services firm rendering suite of value-added services to its clients.

Founded and headquartered in Mumbai in 2021, Kaatil came into existence to bridge the Indian food gap in the space of hot condiments by introducing and highlighting the variety of chillies. From a marketing stand-point, as well as to simplify the buyer’s journey and enhance their experience, every product of Kaatil comes with a number-based nomenclature - higher the product's numeric name, hotter the condiment. They also recently bagged the Great Taste Award 2024 by the Guild of Fine Foods, U.K. and are reported to be the only Indian chilli-focused hot sauce brand to win this honor.

“The Guild has awarded us for our undeniable heat but sustained real flavor. It is exactly what we strive for at Kaatil - delivering flavorful heat. This helps us to expand our global footprint with a legitimate organization putting its stamp of approval towards our mission to bring desi heat to the world, putting Indian chillies, and Bhoot Jolokia in this case, on the global map,” added Merchant.

Staying true to its omnichannel model, Kaatil is currently available on its D2C site (www.kaatil.in), Amazon, Big Basket, Nature’s Basket & in leading offline stores across Mumbai, Pune & Hyderabad. The brand’s products are also now available on Amazon USA & in offline stores in Canada & New Zealand.

The allure of Indian seasoning, dressing, and condiments continues to captivate the local and global markets. Recent data suggests that the industry is pegged to grow Rs. 19,000 Cr by FY25. The Sauces and Condiments category has also witnessed high demand and is anticipated to reach Rs. 3,000 at the growth rate of 23.10 percent by FY25. This exponential rise in demand can attributed to new and booming segments of home chefs, party hosts, caterers, and quick meal fixers.