Industry Odisha Bureau, Oct 12: Early investors holding 31% of Farmley are exploring a sale, with bids due October-end. A deal could value the healthy snacks brand at ₹2,000 crore. It shows FMCG firms’ growing appetite for premium brands.
Emami, ITC, Britannia and Orkla India are reportedly keen on a significant stake in Farmley. People aware of the matter said a deal could value it at ₹2,000 crore. That figure is a potential valuation, not an agreed price.
No binding offer has been reported, and the process remains at an early stage. Preliminary bids are due by the end of October 2026.
The sellers are early investors with a combined 31% stake. They include Omnivore Partners, DSG Consumer Partners, Alkemi Growth Capital and Insitor Partners. Indigram Labs and Trifecta Capital are also part of the group. KPMG is advising them on the sale.
A person close to one interested FMCG company described a dual-track process. Options range from a minority stake sale to a majority transaction. Which route prevails may depend on the founders.
Co-founders Akash Sharma and Abhishek Agarwal jointly own about 32% of Farmley. It remains unclear whether they will sell any shares. If they join, the deal could become a majority stake sale.
Private equity firm L Catterton holds about 21% and is unlikely to sell now. The firm is part-owned by LVMH and Groupe Arnault. Angel investors, other entities and an ESOP pool hold the rest.
L Catterton entered in 2025, investing about ₹194 crore in a ₹223-crore Series C round. That round valued Farmley at ₹944 crore. Some existing investors partly exited, while DSG Consumer Partners raised its stake.
A ₹2,000-crore deal would more than double that earlier valuation. Such a jump would not, by itself, confirm investor returns.
IIT alumni Sharma and Agarwal founded Farmley in 2017 as a B2B supplier. It mainly sold dry fruits and nuts to retail businesses. In 2021, it became a direct-to-consumer, or D2C, brand. That shift made brand building and consumer recognition central to its strategy.
Revenue rose 72% to ₹396 crore in FY25, from ₹230 crore in FY24. Sources expect FY27 revenue of ₹700–750 crore, a projection rather than a result. Profitability figures were not disclosed.
About 80% of revenue comes from online sales. These include ecommerce marketplaces and quick-commerce apps. Such digital reach could appeal to buyers seeking ready access to online shoppers.
Snacking has become a focus area for India’s FMCG majors. Many now prefer buying brands in premium food categories to building them from scratch. Acquisitions can offer faster entry, existing customers and established sales channels.
Buyers could also pair such brands with their wider distribution networks. Yet deals carry risks, including high valuations, integration costs and uncertain growth.
Farmley’s founders did not respond to messages before the report’s publication. Several investors, Britannia, Emami and Orkla also did not reply. An ITC spokesperson declined to comment.
The buyer, final stake size and price all remain uncertain. Still, the interest underlines the strategic value of established premium food brands. For FMCG majors, buying growth may increasingly rival building it.
