"Sixth Sense Ventures Invests ₹100 Crore in Spice Company Pushp"

Mumbai-based venture capital firm, Sixth Sense Ventures, has announced a substantial investment of ₹100 crore in Indore-based Pushp Brand (India) through its SSIO-III fund. The infusion of funds into Pushp, a key player in the spices market, underscores the continued vibrancy in the Mergers and Acquisitions (M&A) landscape within the spices industry.

Founded by Mahendra and Surendra Surana, Pushp has emerged as a leading spices brand in Central India, successfully expanding its market presence beyond Madhya Pradesh to states such as Maharashtra, Rajasthan, Uttar Pradesh, Bihar, and Gujarat. The company has demonstrated remarkable financial performance, boasting a revenue growth of 25 per cent Compound Annual Growth Rate (CAGR) over the last five years. Pushp is now strategically positioned to transform into a significant national brand.

Nikhil Vora, the Founder of Sixth Sense Ventures, shared his insights on this strategic investment in a LinkedIn post. He highlighted spices as a large, fast-growing category with an attractive margin profile and a strong distribution moat. Vora emphasized the market trend of consumers shifting from loose, unbranded spices to packaged, branded alternatives, positioning Pushp to capitalize on this evolving consumer behavior. With its experienced management team, efficient procurement practices, state-of-the-art manufacturing facilities, and robust distribution network, Pushp is undergoing a transition from a regional heavyweight to a national player, unlocking substantial value in the process.

The spices category, estimated at ₹90,000 crore, is anticipated to witness the organized and branded segment reaching ₹50,000 crore by 2025, growing at a 16 per cent CAGR, according to projections by Avendus Capital. The blended spices segment, known for higher margins, is experiencing rapid growth at a 25 per cent CAGR, catering to modern cooking preferences and the increasing demand for convenience.

Sixth Sense Ventures, a consumer-focused VC firm, noted that regional leadership coupled with a significant share in the blended spices segment contributes to superior margin profiles and cash-flow generation. The absence of multinational corporations (MNCs) in this space presents ample expansion opportunities for regional brands to establish a national presence.

Vora highlighted the evolution of spices from loose to packaged to blended forms, resulting in a 6x pricing premium. Pushp, with its diverse range of offerings including CTC, straight spices, blended spices, and value-added products, actively participates across the entire spices value chain.

Mahendra Surana, Co-founder of Pushp, expressed enthusiasm about the next phase of growth, stating, “The Indian consumer is focused on taste, quality, and reliability, and our sharp focus on these factors has helped us build deep trust with customers to become one of the top brands in the spices category. We are thrilled about the next phase of growth as we build Pushp into a leading spices brand in the country.”

HBL