Reliance Consumer Products Acquires TagZ Foods for INR 28 Cr

Reliance Consumer Products — a wholly-owned subsidiary of Reliance Retail is reportedly going to buy the direct-to-consumer (D2C) snacking startup TagZ Foods for INR 28 Cr (USD $3.5 million). A regulatory filing said this acquisition looks like a distress sale because the size of the deal may change post-due diligence. As per an Inc42 report, both firms refused to comment on the deal at the time of publishing.

Reliance Consumer Products Acquires D2C Snacking Startup TagZ Foods for INR 28 Cr

Founded in 2019 by Anish Basu Roy and Sagar Bhalotia, TagZ Foods has diversified into popped potato chips, gourmet dips, and cookies. The company sells its products through its website, major e-commerce platforms, and offline stores. TagZ has raised a total funding of $3.2 million since its launch over multiple rounds, and in the latest round, former Indian cricketer Shikhar Dhawan also became an investor with the company along with being a brand ambassador as well.

Earlier, it raised a $2 million pre-Series A round led by 9 Unicorns and a $1.2 million seed round in 2020 from angel investors. Venture Catalysts and Klub are other players that have supported TagZ as well. TagZ started off on the right foot but has also struggled with some operational challenges such as scaling, leading to production stops, and product shortages online and at stores. These problems led to reports that multiple employees left the company.

The acquisition comes after TagZ reported a net loss of INR 10.7 Cr for FY 2023, with operating revenue of INR 9.6 Cr. TagZ competes with established brands like Lays, BRB, Uncle Chips, and Too Yum in the competitive snacking industry. This acquisition is part of a broader trend in India, where FMCG giants are acquiring D2C brands as the sector grows. Notable recent deals include ITC’s purchase of Yoga Bar and Hindustan Unilever’s acquisitions of Oziva and Wellbeing Nutrition.

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