Aavishkaar Bharat Fund, an investment fund worth $200 million, has made an investment of approximately $5.3 million into Kottaram Agro Foods.

The food and beverage startup was founded in 2011 by Prashant Parameswaran and provides customers with pre-packaged food items. The startup has recently made a move into the beverage sector specifically.

The company, which uses the brand name ‘Soulfull,’ turns finger millet into various pre-packaged food items for consumers.

“The tangential outcome of Soulfull products is increase in demand of ancient grains that will address problems of marginal Indian farmers and reduce environmental stresses on land since these grains can grow in arid areas, are pest resistant and need minimal fertilizers,” Vineet Rai, Managing Director of Aavishkaar told Livemint.

Kottaram Agro Foods plans to release their newest product made of 12 naturally found grains, a beverage option called Smoothix.

The fund, which is from the Aavishkaar-Intellecap Group, usually invests in the earlier stages of startups. A new fund worth $150 million is in the works from the company. The fund will focus on the African continent.

The Bengaluru-based startup aims to focus on the Indian population with a desire for healthier food choices and have partnered with state governments and research institutions with a similar focus.

“There are immense opportunities in the packaged foods industry in India which is growing rapidly at 20-25%,” Managing Director and Chief Executive at Kottaram Agro Foods said. “The partnership with Aavishkaar will help Soulfull strengthen its product portfolio, accelerate marketing and expand its distribution reach to over 50,000 retail outlets in the next three years.”

Flakes, muesli, millet meals and Ragi bites are among the products offered by the startup.

(Picture courtesy: https://www.snapdeal.com/)