Phab raises $2 million seed funding for nutrition snacks

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In a major boost to India’s growing health and nutrition sector, Phab raises funding of $2 million in its latest seed round. This early-stage investment, led by Sauce VC and a cohort of angel investors, marks a pivotal moment for the Mumbai-based nutrition-focused brand. Founded in 2019 by Rohan Mirchandani, Phab has quickly carved a niche for itself with high-protein snacks, protein powders, and meal replacement products that bridge the gap between health and taste.

The fresh funds will primarily drive product innovation, marketing, and expansion into new markets across India. As consumer interest in healthier snacking options surges, Phab’s timing could not have been better. The brand plans to introduce more plant-based, protein-rich products in response to India’s growing vegan and health-conscious communities.

The funding round underscores rising investor interest in India’s functional foods and nutrition markets, a segment projected to grow at a CAGR of 20% over the next five years. With a strong D2C presence and partnerships with major e-commerce platforms like Amazon and Flipkart, Phab is strategically positioned to scale rapidly. In addition to e-commerce, the brand is also eyeing deeper retail penetration through modern trade outlets.

Phab’s success story is emblematic of a broader trend: health-focused startups are no longer niche players but are fast becoming mainstream. As Phab raises funding, it signals growing investor confidence in brands that combine science-backed nutrition with mass-market appeal. The Startups News continues to track such inspiring journeys in India’s evolving startup ecosystem.

1. Phab Raises Funding: Inside the $2 Million Seed Round

1.1 The Key Players Behind the Investment

Phab’s $2 million seed round was led by Sauce VC, known for its sharp focus on consumer brands. Angel investors with backgrounds in consumer goods, tech, and venture capital also participated enthusiastically.

Rohan Mirchandani, founder and CEO, expressed gratitude toward the investors, highlighting their strategic guidance in addition to the financial boost. According to insiders, investors were impressed with Phab’s 300% year-on-year growth and robust customer loyalty metrics.

1.2 Strategic Use of the Funds

The primary aim of this capital injection is to scale Phab’s R&D capabilities. The company will also use part of the funds to launch a new line of vegan and functional snacks.

Marketing initiatives will see a major uplift, especially digital-first campaigns targeting India’s rapidly growing Gen Z and millennial demographics. Furthermore, Phab plans to strengthen its retail presence by expanding to over 2,000 retail outlets across metro and Tier-1 cities.

2. Why Investors Are Betting Big on Nutrition Snacking Startups

2.1 Changing Consumer Preferences

India’s health and wellness industry is on a growth tear. Consumers are becoming increasingly conscious of what they eat, fueling demand for clean-label, functional foods. Startups like Phab are perfectly positioned to capitalize on this megatrend.

Interestingly, over 60% of India’s urban youth now prefer snacks that offer some form of functional benefit — be it added protein, fiber, or immunity boosters.

2.2 Market Opportunity and Growth Potential

The functional snacking market in India is expected to surpass $10 billion by 2028. Fueled by a rise in disposable incomes and increasing awareness about fitness, this market offers fertile ground for innovative brands.

Phab’s business model — a blend of D2C and retail expansion — provides a competitive edge by catering to both digital-first consumers and traditional buyers. This omnichannel approach is what investors find highly promising.

3. Phab’s Journey So Far: From Protein Powders to Full-Spectrum Nutrition

3.1 Brand Evolution and Product Innovation

Launched initially with a range of high-quality protein powders, Phab soon expanded into protein bars, meal replacements, and ready-to-drink shakes. All products focus on clean ingredients, minimal sugar, and maximum taste.

This evolution mirrors the global trend where consumers demand multi-functional products that align with fast-paced, health-oriented lifestyles.

3.2 Consumer Response and Market Penetration

Phab’s ability to maintain a repeat purchase rate of over 45% reflects its strong brand loyalty. Additionally, collaborations with fitness influencers and dietitians have amplified its credibility among health-conscious consumers.

Its presence on top e-commerce platforms and increasing availability at premium supermarkets have further boosted brand visibility.

4. Future Plans: What’s Next After the Seed Round

4.1 Expansion into Plant-Based Nutrition

Acknowledging the growing vegan movement in India, Phab plans to roll out a complete range of plant-based protein snacks and beverages. These products will cater to the increasing demand for sustainable and cruelty-free food options.

The brand is also setting its sights on export markets, especially Southeast Asia and the Middle East, where demand for high-protein foods is skyrocketing.

4.2 Technology-Driven Personalization

Phab is investing in AI-based tools to personalize nutrition recommendations. A soon-to-launch app will guide users toward products tailored to their fitness goals, dietary preferences, and lifestyle habits.

5. Learnings for Startups and Entrepreneurs

5.1 Focus on Consumer-Centric Innovation

Phab’s journey proves that startups that listen to consumer demands and innovate accordingly can carve a niche even in highly competitive markets. Understanding customer preferences early and acting on insights is key.

5.2 Omnichannel Strategy is a Game-Changer

A blend of D2C and retail presence allowed Phab to reach varied customer segments efficiently. Startups must realize that relying solely on one channel can limit growth opportunities.

5.3 Health and Sustainability are the Future

Nutrition startups that align with global trends like plant-based foods, clean ingredients, and sustainability can unlock massive opportunities. Long-term thinking always pays off, especially in emerging sectors.

6. Conclusion: Phab’s Funding Milestone Reflects a Larger Movement

As Phab raises funding, it symbolizes a broader shift happening within India’s startup ecosystem. Consumers are becoming more mindful, and startups that focus on authenticity, health, and transparency are thriving.

For Phab, the $2 million seed round is not just about scaling operations — it’s about leading a movement toward healthier, smarter snacking.
At The Startups News, we remain committed to bringing you more such inspiring stories about emerging brands, innovative entrepreneurs, and the future of India’s startup revolution.

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At The Startups News, we bring you the most relevant, deeply researched, and industry-verified startup news. Whether it’s the latest funding announcements, startup trends, or founder insights, The Startups News ensures you stay ahead with authentic and easy-to-understand updates. Just like Phab is innovating India’s snacking habits, The Startups News helps startups and entrepreneurs innovate with knowledge, strategy, and inspiration every day.