Scandalous Foods Raises ₹2 Cr to Boost Sweets Distribution

Scandalous Foods, a leading B2B innovator in Indian sweets for the restaurant and catering industry, has secured INR 2 crore in ongoing  Seed+ funding round. The capital will be strategically invested in expanding production capacity and strengthening its SME HoReCa (Hotels, Restaurants, and Catering) distribution network, fueling the company’s next phase of growth.

With 50% of the funds allocated to scaling production, Scandalous Foods is gearing up to meet the rising demand that has driven consistent month-on-month growth. The remaining 50% will focus on expansion efforts, with 30% dedicated to building a robust SME HoReCa distribution network—targeting smaller restaurant chains with fewer than five outlets—and 20% directed toward online and offline marketing initiatives.

“At Scandalous Foods, we’re not just selling Indian sweets—we’re working towards becoming the biggest mithaiwala in the unplanned post meal impulse purchase space. This funding is a massive leap forward in our journey to make our sweets a staple in restaurants and catering menus across India. With bigger production, a stronger distribution network, and new products in the pipeline, we’re gearing up to bring our bold, delicious creations to even more people. The love we’ve received so far has been incredible, and this is just the beginning! Also, we truly appreciate the promptness and professionalism shown by New Age India Fund in transferring the funds. It’s a great start to what we believe will be a strong and supportive partnership.”  said Sanket S., Co-Founder of Scandalous Foods.

The company has experienced 7x growth in calendar year 2024, selling over 2 million cups of Indian sweets across nine cities. With a reach of nearly one million unique consumers through its 27 B2B clients and 1,500+ distribution points, Scandalous Foods is quickly becoming a go-to name in the industry.

Avinash Kalia, Chief Investment Officer, New Age India Fund explained  “At our fund, we actively seek out founders with the vision and capability to execute and scale in unique, high-potential niches. Sanket and the team behind Scandalous exemplify this perfectly. With prior experience in the food industry, they’ve identified a compelling niche and are poised to capitalize on it. Sanket is a driven entrepreneur with a clear roadmap for where Scandalous is headed, and his infectious enthusiasm makes it easy to believe in that vision. We’re excited to partner with them on this journey.” 

Beyond scaling its footprint, the brand is introducing 2-3 new products and expanding into new sub-channels within existing markets. Initially focused on key account HoReCa clients, Scandalous Foods will now target SME HoReCa and caterers, further strengthening its presence in India’s evolving F&B landscape.

Looking ahead, the company is focused on achieving INR 20 crore+ revenue within the next year, while also preparing to expand into the Middle East by 2026. Additionally, Scandalous Foods will introduce branded Indian sweets under its B2B2C label, FAAD, within the HoReCa channel, reinforcing its long-term vision for growth.

With India’s love for desserts driving innovation, Scandalous Foods is paving the way for high-quality, accessible Indian sweets in the impulse-driven market. This funding milestone sets the foundation for the company’s continued expansion and leadership in the industry.