TLDR:
- Siddhi Capital has doubled the size of Fund II to $135 million.
- They plan to focus on larger CPG deals with mass market viability and positive cash flow.
Siddhi Capital, a growth equity firm known for offering operational expertise to food and beverage brands, has closed its $135 million Fund II, doubling the size of its predecessor fund. In a tough fundraising environment, the company plans to invest in fewer and larger CPG deals that have high margins and aim to generate positive cash flow. The VC landscape is facing challenges, with many startups having to raise down rounds in 2023 and VC fundraising seeing a record decline. However, Siddhi Capital’s strong historic performance has attracted interest from LPs, with almost all participants from Fund I joining the second raise.
In Fund II, Siddhi Capital will target growth-stage businesses in traditional food and beverage categories, as well as food technology, expanding into health & wellness, beauty, personal care, pet, and alcohol sectors. With a focus on problem-specific and mass market viability, the company aims to lead growth rounds in companies with higher revenues to avoid dilution. Notable portfolio companies include Super Coffee, Cirkul, Magic Spoon, Immi ramen, Mid-Day Squares, and Momofuku, which all cater to the everyday consumer’s needs with non-intimidating product profiles.
Looking ahead, Siddhi Capital will continue to provide operational support to its portfolio companies, offering in-house sales strategy, warehousing, logistics, distribution, and manufacturing expertise to help brands reduce costs and improve margins. The firm’s goal is to become a generational firm that positively impacts the consumer space by leveraging its in-house team and making a difference in the industry and consumers’ lives.
