With ₹2 Crore in New Funding, Scandalous Foods Doubles Down on Dessert Innovation

What happens when you take a centuries-old Indian tradition and blend it with modern convenience, cloud kitchens, and sharp business acumen? You get Scandalous Foods, a bold B2B sweets brand that’s rewriting the rules of how mithai reaches your plate—especially if that plate belongs to a restaurant, hotel, or caterer.

Founded in August 2022 by Sanket S, this Nashik-based startup is on a mission to become the country’s go-to mithaiwala—not in your neighborhood market, but in the unplanned post-meal indulgence space across India’s food service industry.

Scandalous Foods has just raised Rs 2 crore in an ongoing seed funding round led by New Age India Fund, with three more term sheets from other investors and a family office under consideration. This comes just months after the brand secured Rs 3 crore in pre-seed funding in February 2024 from Indian Angel Network and others.

With a total of over Rs 5 crore in funding, the startup is now laser-focused on scaling production and expanding its reach to SME HoReCa clients, which include smaller restaurants, hotels, and caterers who crave high-quality, consistent desserts but often lack in-house capacity.

At its core, Scandalous Foods is solving a simple but powerful problem: how do you bring fresh, preservative-free Indian sweets to the hospitality sector at scale—without compromising on taste or shelf life?

The answer lies in their single-serve sweet cups, which boast a 6-month shelf life without the use of preservatives. This format has already proven wildly popular, with over 2 million cups sold in 2024 alone across nine cities, reaching nearly 1 million unique consumers through 27 B2B clients and 1,500+ distribution points.

Currently focused on cloud kitchens, Scandalous Foods is preparing to debut mithai bars and sachets—a strategic move designed to capture on-the-go cravings and unplanned indulgences. These new formats aim to meet the evolving consumer habits of diners who want a guilt-free, portion-controlled sweet after their meal.

We’re not just selling sweets—we’re building a category,” says co-founder Sanket S. “This funding is a massive leap forward in our journey. We want to become the biggest name in impulse dessert purchases in the food service space.”

Next on the roadmap: 2–3 new productsexpansion into new sub-channels, and a sharper focus on SME HoReCa clients and caterers—a segment that’s growing rapidly but often underserved when it comes to innovative, scalable dessert solutions.

With 7x growth this year and momentum building, Scandalous Foods isn’t just riding a sugar high—it’s cooking up a sweet revolution in how India eats its desserts outside the home.

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