Yu Foods’ operating revenue more than doubled to INR 35.1 Cr in FY25 from INR 15.7 Cr in the year-ago period on the back of growing demand for its products
Its net loss grew 42.8% to INR 11 Cr during the year under review from INR 7.7 Cr in FY24. The key reason behind the rise in loss was a decline in deferred tax benefit to INR 89.6 Lakh in FY25 from INR 3.5 Cr in the previous year
Total expenses grew 77.8% to INR 48 Cr in FY25 from INR 27 Cr in the previous year
D2C instant food brand Yu Foods’ operating revenue more than doubled to INR 35.1 Cr in FY25 from INR 15.7 Cr in the year-ago period on the back of growing demand for its products.
Including other income of INR 1.3 Cr, the startup’s total income stood at INR 36.4 Cr in the year under review.
Meanwhile, net loss grew 42.8% to INR 11 Cr during the year under review from INR 7.7 Cr in FY24. The key reason behind the rise in loss was a decline in deferred tax benefit to INR 89.6 Lakh in FY25 from INR 3.5 Cr in the previous year. If not for it, the Gurugram-based startup’s loss would have remained flat.
EBITDA loss for the year stood at INR 8.5 Cr as against a loss of INR 9 Cr in FY24. EBITDA margin improved to -24% from -60% in the previous year.
Total expenses grew 77.8% to INR 48 Cr in FY25 from INR 27 Cr in the previous year. In this, employee benefit expenses increased 18.4% to INR 4.5 Cr from INR 3.8 Cr in FY24.
Founded in 2021 by Bharat Bhalla and Varun Kapur, Yu Foods offers over 25 instant food products like noodles, pastas, desserts, halwa, among others. The D2C brand initially launched instant cup noodles and pastas, before expanding to ready-to-cook meals and other categories.
Cofounder and CEO Bharat Bhalla told Inc42 that the startup’s revenue till October in FY26 stood at INR 36 Cr, higher than the revenue of entire FY25. He expects Yu Foods to post a net revenue of INR 70-75 Cr in FY26, with an estimated gross revenue of about INR 100 Cr.
Quick Commerce Remains Growth Driver
The growth, as per Bhalla, is being predominantly driven by online and quick commerce channels, which currently account for roughly 65% of the revenue. The remaining 35% comes from offline retail, institutional clients, and other alternative channels.
The cofounder said that Yu Foods is proceeding cautiously with offline expansion. The startup, which currently operates in North and South India, is focusing on modern trade outlets such as DMart and Reliance Supermart for offline sales, while largely avoiding penetration into kirana stores.
“We are very focused on sustainably growing offline channel without losing cashflow,” Bhalla said.
He added that Yu Foods will prioritise deeper penetration in existing markets in the near term rather than going for aggressive pan-India expansion.
Notably, the D2C brand has roped in cricketer Hardik Pandya as its brand ambassador and counts the likes of Sameer Mehta, Srikrishna Dwaram, Nikhil Srivastava, and DPIIT’s Start Up India Seed Fund among its investors.
In October last year, it raised $6.5 Mn (INR 55 Cr) in its Series B funding round, led by ace investor Ashish Kacholia and the Asian Paints Promoter Group. The round also saw the exit of some early investors, giving them up to 4X returns.
Overall, Yu Foods has raised about INR 100 Cr to date.
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