Happilo, a Bengaluru-headquartered startup, was born out of Vikas D Nahar’s ambition to build one of India’s leading suppliers of premium, calorie-conscious, nutrient-rich snacks. Founded in 2016, Happilo is today an omnichannel healthy snack brand that provides an array of food products to customers, including dried fruits, dates, seeds, nuts, berries, and trail mixes, and is the category leader in the country. With a total investment of approximately Rs 400 crore, the brand has witnessed a 4X growth (post-pandemic). With annual revenue of around Rs 500 crore, the brand aims to reach a target of Rs 2,000 crore by 2025.

Happilo has reimagined its brand identity for a premium global appeal prior to expanding its footprint in the global markets. The startup has been aggressive in portfolio expansion and marketing through multiple partnerships with popular entities. As part of its product portfolio diversification, the brand is foraying into the dry fruit bars segment with the launch of Happilo healthy dry fruit bars in 6 differentiating flavors.

“The brand was conceptualized to cover a big gap in the category which is around healthy and tasty options for snacking. There were a lot of snacking options but everything was far from healthy as well as tasty together. Today, we are present in all marketplaces in e-commerce and quick commerce along with growing strong with more than 10,000 modern trade and general trade stores. We are also launching the brand in global markets, starting with UAE and growing strong in institutional and HoReCa sales. We have opened a fully automated 1 lakh+ sq feet manufacturing plant in Nelamangala,” asserted Vikas D Nahar, Founder, Happilo.

Omnichannel: The Way Forward

Distribution is the key factor for the growth of the FMCG brand Happilo, and this is the reason why Happilo wants to be present in all possible touch points – be it online or offline. Till now the brand was primarily available in metro and Tier I cities, and now it is eying distribution and market penetration in Tier II and III cities as well.

“We are also launching our exclusive brand outlets in a few select airports and malls and opening franchise stores which will give our brand strong visibility. The plan is to open more than 25 such outlets. HoReCa and the travel sector are a big part of our distribution strategy. We are today available at all Q-commerce portals like Swiggy Instamart, Blinkit, Zepto, and more,” he stated.

“We aspire to become a global brand out of India, hence we are planning to go on Amazon.com shortly and working towards further expansion in 10 countries (already exporting) in the coming year,” he further added.

The brand is moving to an omnichannel approach for the brand and is planning to launch 100 stores across India by 2023. The brand is planning to open these stores in the high footfall malls, high streets, and key airports in India. This will enable people to experience the brand and sample the products which will strengthen the trust and loyalty of the brand. 

“From being a D2C brand, we are becoming an omnichannel brand because going digital first helps you take the product line faster to market, there is more control on brand perception and direct consumer interaction. Leveraging online channels really helps in consumer interaction and acceptance of products. But in order to penetrate in mini metros, Tier 1 and 2 markets you need to have small size products like sachets and deeper offline penetration and hence it’s imperative for us to be omnipresent,” he explained.

Marketing Strategy

Building a strong brand presence and recall is the foremost quotient for acquiring new customers for Happilo.

“We are investing in getting celebrities on board, and is even looking at the presence of all ATL and BTL mediums to ensure brand visibility and awareness with 10+ OTS,” he stated. 

Technology: Revolutionizing the Brand

The brand has launched its new facility in Neelamangala and has automated all its operations. It is getting into fully automated technology which ensures larger shelf life and a faster rate of production per minute and this state-of-the-art technology is very rare in India in FMCG. It is expected that this will help the brand meet the growing demand for its products. 

“SAP is fully integrated with the brand. It handles a number of business tasks by streamlining and automating daily business activities. The software produces a leaner and more precise procedure and offers a full, 360-degree perspective of the inside and outside of your business.  With the help of ERP, we are able to boost both user efficiency and productivity,” he said.

Future Plans

Till now, the brand has raised two rounds of funding. The first round worth $13.7 million was led by A91 Partners and the second round worth 425 million by Motilal Oswal Private Equity (MOPE)

“We will be utilizing these funds to build the brand equity, and brand expansion and looking forward to building a great leadership team that will give it multi-fold growth,” he asserted.

The brand, which has been aiming to achieve a run rate of more than Rs 1,000 crore and eyeing to be a Rs 2,000+ brand in the healthy snacking category in the next 5 years, will be launching in the UAE and Africa markets soon.

“We have listed our products on Amazon.com and along with this, we are also planning to enter the US, the Middle East and African markets, Southeast and Asian countries, and European market including UK and Oceana,” he concluded.