Despite a significant increase in total expenses, the company managed to reduce its net loss by roughly 15% to Rs 22.5 crore, compared with Rs 26.5 crore in the prior year. Improved cost efficiency helped lift key financial metrics like ROCE and EBITDA margin, though they remained negative at –51.56% and –3.68% respectively.

Farmley’s performance underscores the growth potential in the organised healthy snacks segment, driven by evolving consumer habits and heightened health awareness. While operating costs rose alongside expansion efforts, the improvement in topline and contraction in losses highlight that Farmley is progressing toward more sustainable unit economics, which is a critical milestone for direct-to-consumer brands seeking scale without compromising profitability.

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The dried fruits and nuts segment of India’s healthy snacking market is expected to expand by around 14% annually over the next six years to cross $8.5 billion by 2031 on the back on secular tailwinds. These include consumers’ increasing propensity to swap unhealthy snacks for healthier ones, as well as eat these snacks not only when they feel peckish, but also to meet other needs such as post-workout nourishment and small meal replacement. Consumers are also increasingly opting for branded snacks that offer consistent quality via organized sales channels with better hygiene standards than unorganized ones, just like they have in other packaged food categories.

Farmley has become the fastest-growing brand in its category by offering a diverse portfolio of wholesome, better-for-you snacks via its omnichannel distribution network. Seeking to redefine the future of healthy snacking through innovative products, the company crafts indulgent yet guilt-free snacks based on the goodness of dried fruits and nuts. These include India’s widest range of flavoured makhanas, as well as trail mixes, date bites, and seeds which have garnered market-leading advocacy rates.

Underscoring Farmley’s growing appeal, its revenue has risen by approximately 55% annually over the past two years to reach around Rs. 370 crore in FY25. Significantly, the company has generated such momentum while also achieving profitability, attesting to its financial discipline. Moreover, its unique farm-to-palm model empowers farmers, promotes sustainable practices, and delivers exceptional quality to its customers.

Commenting on the investment, Farmley Co-Founders Akash Sharma and Abhishek Agarwal said, “We are committed to reimagining snacking for the modern Indian consumer, transforming what was once considered mere convenience food into a wholesome delightful experience. We are thrilled to partner with L Catterton as its differentiated combination of global and local insights into our industry, as well as proven operating capabilities will be instrumental as we continue revolutionizing the healthy snacking landscape in India. Our roadmap includes penetrating untapped regional markets, developing cutting-edge product formulations that blend nutrition with exceptional taste, and leveraging advanced food technology to create snacks that truly nourish both the body and the palate.”

L Catterton Partner and Head of India Anjana Sasidharan added, “Farmley has been able to astutely capitalise on long-term consumer trends with its better-for-you positioning and high-quality products which resonate with customers. Its robust dried fruit and nut sourcing capabilities, prolific new product development engine, and strategic partner status across key sales channels have been vital drivers of the company’s growth in its category. We are excited to collaborate with the talented team at Farmley to further realise the company’s potential by drawing on our experience in building multiple food brands across the world.”

L Catterton has significant experience building brands in the packaged food sector across the world. Current and past investments in the space include Cholula Hot Sauce, Ferrara Candy Company, Goodles, Kettle Foods, Kodiak, Little Moons, NotCo, Planted, and Plum Organics.

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Backed by extensive research and development, Farmley has replaced palm oil with healthier alternatives like zero oil, olive oil, and ghee across its entire range of products, solidifying its commitment to healthy snacking. 

With growing health consciousness among consumers, palm oil, a commonly used vegetable oil, has raised environmental and health concerns due to its high saturated fat content. A study published in the National Library of Medicine reveals that palm oil is composed of 50% saturated fatty acid. It increases LDL or ‘bad’ cholesterol levels in the bloodstream, increasing the unhealthy fat content in the human body while elevating the risk of cardiovascular diseases in people.

In tandem with its transition, Farmley is rolling out the ‘Palms Off Palm Oil’ campaign, aimed at enlightening consumers about the adverse effects of palm oil on both health and the environment. The campaign endeavors to educate consumers about palm oil’s detrimental role in deforestation, habitat destruction for wildlife, and its contribution to climate change.

Through this initiative, Farmley seeks to empower consumers, enabling them to make informed choices and actively participate in the movement toward a healthier, more sustainable future.

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