Urban Harvest, a B2B startup that deals with fresh food, just bought Cocosutra, a fancy food brand, for about ₹2.5 crore in cash. It looks like they want to grow their own line of higher-end, direct-to-consumer food brands in India’s quickly-changing food scene.
This purchase puts Cocosutra right in the middle of Urban Harvest’s plan to get into fancy and better food types. It’ll also help Cocosutra grow faster because they can now reach more restaurants, cloud kitchens, and other food service businesses. Cocosutra, which sells gourmet food straight to customers, will now be able to get its products out to more places more easily, manage its supply chain better, and make more money per item—all really important for D2C brands to grow in India.
Urban Harvest says they’re already working on bringing everything together and hope to have all the systems, teams, and operations combined in the next couple of months. They also said that Cocosutra will keep its name and fancy image while taking advantage of Urban Harvest’s more well-organized backend and sales strategies.
Cocosutra started as a gourmet food brand and has made a name for itself selling high-quality food to people in cities and modern food businesses. Since more people in India want premium D2C food and drink brands, Cocosutra is in a good spot because it focuses on quality, consistency, and having a strong brand, which is what people want more than cheap everyday options.
Since the purchase started, Cocosutra’s business has reportedly tripled because they can now use Urban Harvest’s big B2B network to get into more restaurants and food service places. Being bigger has also helped them control costs, buy things for less, and move inventory faster, which is super important for any food D2C brand.
Urban Harvest thinks Cocosutra can make ₹100 crore in revenue in the next two years. They’re planning to use their current relationships with restaurants, understanding of demand, and delivery system to make it happen. This idea shows that more Indian D2C brands are starting to buy other companies to grow faster instead of building everything themselves.
For Urban Harvest, buying Cocosutra means they can sell more than just fresh food and get into branded, better D2C food products, which have better returns and create stronger brand loyalty. For Cocosutra, this deal is a big turning point, helping them get their stuff out there faster, offer better prices, and run things more smoothly while still focusing on their customers and brand.
This deal also shows that more D2C businesses are being bought up as food and drink companies try to mix strong consumer brands with well-organized backend systems. As India’s D2C world matures, these kinds of partnerships are becoming a good way to grow, mixing interesting brand stories with innovative supply chains.
With Urban Harvest’s system and Cocosutra’s well-known brand now working together, this purchase sets the stage for faster growth in both B2C and food service areas, which builds confidence in India’s next wave of successful and profitable D2C food brands.
