FSSAI-certified online paan company Betel Leaf raises $1.2M led by IPV, Venture Catalysts

Betel Leaf, India’s first FSSAI-certified online paan company, has raised $1.2 million in a bridge funding round led by Gurugram-based Inflection Point Ventures and Venture Catalysts. 

The funds raised will be utilized to expand the current retail and online presence from 45 kitchens to 100 kitchens in India and overseas within the next 2 years while also enabling the development of new automation technology to enhance consistency and increase production volume and range, including innovative products like the ARID paan, a paan with 9 months Shelf life that can be carried anywhere to a Digestive Innovative Tea made from Pure Betel leaves.

What does Betel Leaf do?

Founded in July 2019 by Prem Rheja and Payal Raheja, Betel Leaf Co. offers a variety of paan that reaches customers worldwide. Known for its recipe-based formulations and triple-layered packaging, Betel Leaf ensures a fresh and hygienic experience with minimal hand contact.

Operating in over 20 cities across 12 Indian states and exporting to countries like Singapore, Malaysia, Nairobi, the UK, and the USA, Betel Leaf is expanding its retail footprint through partnerships with major chains like Reliance Retail and Spar.

The startup also plans to open brick-and-mortar stores to enhance customer experience and brand visibility.

Leadership comments

“The Betel leaf company was born to redefine the age-old tradition to eat paan, the healthy hygienic way, matching technology with tradition. We would like to make every consumer enjoy the benefits of consuming Betel Leaf by the way of paan or other paan based products and looking at becoming the category creator and leaders in organizing this unorganized product,” said Prem Raheja.

What do investors say about Betel Lead?

Ivy Chin, Partner of Inflection Point Ventures, said, “In a fast-paced & transforming India, finding authentic, hygienic, and convenient options for traditional Indian desserts like paan can be challenging. The Betel Leaf Co is addressing this problem head-on by delivering hygienic, fresh, and authentic paan with a variety of flavours right to our doorstep. IPV supports their insights to solving a very unique problem and trusts their commitment to quality”. 

Industry growth

The current market size of the paan industry is estimated to be between 3000 to 4000 crore rupees. With efforts to redefine paan consumption and bring it back into the mainstream, industry experts anticipate a growth rate of at least 100% year on year. This ambitious projection aims to organise and tap this large market.