Khoya raises over ₹6 crore in funding to expand its luxury Indian sweets brand

Delhi-based Lone Star Hospitality Pvt. Ltd., which operates luxury Indian sweets brand Khoya, has raised over ₹6 crore in a pre-seed funding round led by Riga Foods, a portfolio company of Max Group's Chairman Analjit Singh's family office. Other investors, including Priya Paul, also participated in the funding round.

Khoya is a premium brand that develops and produces traditional Indian sweets and luxury confectionery products, selling directly to customers. The company plans to use the funds to expand its retail presence in other Indian cities and enter international markets, as well as develop new products and expand into new categories of related consumer products.

Luxury mithais, a relatively new concept introduced about five years ago, can cost anywhere between ₹20,000-30,000 a kilogram. Khoya competes with other luxury mithai brands such as Gur Chini, Arq Mithai, Meethi, and Bombay Sweet Shop.

Khoya's founder, Sid Mathur, launched the brand in 2016 with the vision to make mithai 'exciting again' by using natural ingredients. Each piece is carefully handcrafted, tastefully arranged, and beautifully packed. The brand has a growing list of high-profile clients, including Louis Vuitton, Cartier, Good Earth, and Lexus.

Mathur said that Khoya has grown organically through only reinvestment of profits, but with this capital raise, they will be able to expand their kitchens, teams, and distribution both in India and internationally. Riga Foods' co-founder, Chef Ritu Dalmia, said that the brand has always been the benchmark of luxury mithai and they are thrilled to be part of their journey.

According to industry estimates, the organised Indian sweets and premium gifting market will be around ₹15,000 crore by 2028. The premium Indian sweets industry is expected to see growth as consumers are looking for more premium and natural ingredients-based products.