A man inspects packaged food products in a busy factory, overseeing operations.
Yu Foods, an Indian direct-to-consumer (D2C) instant food brand, announced its revenue more than doubled in FY26, reaching ₹75 Cr (approximately $9 million USD), according to CEO Bharat Bhalla. Operating revenue increased by 114% from ₹35 Cr in FY25.
Despite the revenue surge, Yu Foods’ net loss remained relatively flat at ₹8 Cr for FY26, compared to ₹7.7 Cr in the previous fiscal year. The EBITDA margin improved to -4%. The company has raised $12 million in equity funding from investors, including the Asian Paints promoter group, Startup India Seed Fund, and Hardik Pandya.
Bhalla noted that 40% of sales are driven by performance marketing, with the remainder generated organically. Marketing spend accounts for 10-12% of revenue. The revenue growth was attributed to increased sales of existing products, such as whole wheat noodles, Korean ramen, and beverages.
The company focused on deepening its presence in existing markets, primarily North and South India, through quick commerce platforms like Blinkit and Zepto. To support demand, Yu Foods expanded its manufacturing facility to 50,000 sq ft and partnered with three beverage bottling plants.
In 2026, Yu Foods raised $3 million in debt and may pursue an equity round of approximately $5 million in FY27 to support further expansion and new product categories.
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