Key Takeaways
- Open Secret raised Rs 50 crore, split between Rs 30 crore equity from Desai Brothers Group and institutional debt
- The brand claims Rs 200 crore ARR with 10% month-on-month growth and profitability
- Funds will expand offline presence beyond 500 stores and deploy AI agents in supply chain
Open Secret, the Mumbai-based healthy snacks brand, has raised Rs 50 crore in a mix of equity and debt. The round splits into Rs 30 crore equity from Desai Brothers Group and Rs 20 crore in institutional debt. The company says it will use the capital to expand its offline retail footprint, launch new product lines, and integrate AI agents into its supply chain operations.
Founded in 2019 by Ahana Gautam, Open Secret sells what it calls guilt-free alternatives to cookies, biscuits, chips, and protein snacks. The brand currently sits in over 500 offline stores across multiple Indian cities. Gautam is targeting Rs 1,000 crore in annual recurring revenue within three years, a fivefold jump from the Rs 200 crore ARR the company claims today.
Why Desai Brothers Group matters for distribution
The equity investor here is not a typical VC fund. Desai Brothers Group brings manufacturing and distribution muscle that a D2C brand scaling into offline retail desperately needs. Open Secret's existing 500-store footprint is modest for a company chasing Rs 1,000 crore revenue. Getting onto more shelves, faster, requires logistics expertise that traditional tech investors cannot provide.
Gautam acknowledged this in her statement: "The partnership with Desai Brothers Group provides the manufacturing and distribution leverage required to scale efficiently." The deal structure, combining strategic equity with institutional debt, suggests Open Secret is trying to avoid heavy dilution while still accessing growth capital.
AI agents in snack supply chains?
The mention of AI agents in supply chain is notable. For a consumer packaged goods company, this likely means demand forecasting, inventory optimization, and logistics routing. Done well, it reduces waste and stockouts. Done poorly, it is a buzzword that burns cash.
Open Secret has not detailed what these AI agents will actually do. But the company claims 10% month-on-month growth while maintaining profitability. If accurate, that discipline suggests management is not chasing headlines. The AI investment would need to clear the same bar.
The competitive landscape in healthy snacks
Open Secret competes with Snackible, The Whole Truth, True Elements, and a growing list of brands chasing the same health-conscious consumer. The segment has attracted significant venture capital over the past five years, though several players have struggled with unit economics.
What differentiates Open Secret, according to the company, is its "Unjunking" philosophy, essentially removing harmful ingredients while keeping products tasty. The strategy bets that Indian consumers will pay a premium for cleaner labels. The Rs 200 crore ARR figure, if verified, suggests enough consumers are buying the pitch.
From online to offline: the D2C pivot
The funding announcement emphasizes offline expansion, including new product lines like chips and namkeen (savory snacks). This pivot is common among D2C brands that discovered customer acquisition costs online are brutal. Shelf space in physical stores offers repeat visibility without paying for each impression.
Open Secret's challenge is that offline retail comes with its own costs: slotting fees, distributor margins, and spoilage. Desai Brothers Group's involvement should help negotiate some of these friction points. Whether it is enough to hit Rs 1,000 crore ARR in three years remains the open question.
Logicity's Take
The deal structure is the real signal here. By taking strategic equity from a distribution partner rather than diluting further with VCs, Open Secret is prioritizing operational leverage over valuation games. The Rs 1,000 crore ARR target in three years is aggressive, requiring roughly 60% annual growth. But the profitability claim, if true, gives them runway to miss the target without collapsing. For tech decision-makers watching D2C, the AI supply chain angle is worth tracking. Companies like Crisp and Osa Commerce offer similar optimization tools for CPG brands, typically at $10K-50K annual contracts. Whether Open Secret builds in-house or buys will reveal how seriously they view this as a competitive advantage versus a press release talking point.
“The demand for healthy snacks is significantly outpacing supply, and we are moving quickly to bridge that gap. Our goal is to hit Rs 1,000 crore ARR within three years, all while maintaining our profitability. This is Open Secret 2.0.”
— Ahana Gautam, Founder & CEO, Open Secret
Frequently Asked Questions
How much funding did Open Secret raise?
Open Secret raised Rs 50 crore total, consisting of Rs 30 crore in equity from Desai Brothers Group and Rs 20 crore in institutional debt.
What is Open Secret's current revenue?
The company claims it has crossed Rs 200 crore in annual recurring revenue and is growing at 10% month-on-month while maintaining profitability.
Who are Open Secret's main competitors?
Open Secret competes with other Indian healthy snack brands including Snackible, The Whole Truth, and True Elements in the D2C food space.
What will Open Secret use the funding for?
The company plans to expand its offline retail presence beyond 500 stores, launch new products like chips and namkeen, and deploy AI agents in its supply chain operations.
Need Help Implementing This?
Building a D2C brand or optimizing your supply chain? Reach out to our consulting partners for hands-on guidance on scaling consumer businesses in India. Contact hello@logicity.in.
Source: Tech-Economic Times / ET
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
