Bengaluru-based Lo! Foods, a leader in functional food innovation, has raised $3.5 million in Series B funding, marking a pivotal step in its mission to make health-first eating mainstream in India. The round was led by Rainmatter Health (backed by Zerodha), Capital Code from Singapore, and supported by returning investors Mount Judy Ventures, ICE.vc, KPB Ventures, and several family offices.

The capital will go toward expanding Lo! Foods’ warehousing infrastructure, upgrading backend operations, piloting offline distribution in Bengaluru, and scaling its fastest-growing vertical, Protein Chef.

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Building a Category from Habit, Not Just Hype

Lo! Foods is already nearing an impressive ₹100 crore (~$12 million) annual revenue run rate, with strong signals of product-market fit. The company operates four key verticals tailored for India’s diverse health needs: Protein Chef (daily protein meals), Keto Smart, DiabeSmart (soon to be rebranded as Sugar Smart), and GlutenSmart.

One of the standout achievements? Over 65% of their revenue now flows through quick-commerce platforms like Zepto, Blinkit, and Swiggy Instamart. This aggressive Q-commerce strategy has not only scaled access but made the brand part of daily household decisions - a rare feat for health-oriented food products in India.

While most consumer brands fight for visibility in digital storefronts or premium aisles, Lo! Foods has embraced a “category creation via convenience” approach - owning the delivery moment rather than the grocery shelf.

And it’s here that the company’s deeper insight becomes clear: the fastest-growing D2C food startups aren't just delivering meals - they’re designing micro-habit formation at the infrastructure level. By prioritizing consistent presence on instant delivery platforms and aligning product availability with key consumer moments (post-gym hunger, diabetic snack urges, early breakfast rush), Lo! Foods turns intent into behavior.

Founders often chase distribution before decoding behavior. Lo! Foods does the reverse. They identify when the craving hits, engineer product SKUs for that slot, and use tech-powered fulfillment to remove friction from trial. This is not just product-market fit - it’s behavior-channel fit. For any founder building in the consumer space, this is a reminder: You don't need to dominate the market - you need to dominate the moment.

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Strategic Offline Expansion

Even as Lo! Foods thrives in the digital realm, it’s now piloting an offline retail expansion in Bengaluru, integrating physical presence into its multichannel mix. This move reflects a growing understanding that trust and recall often multiply when customers can see and touch a brand.

Offline presence can serve as both sampling mechanism and credibility anchor - especially for health products, where personal experience drives retention. For Lo! Foods, these offline pilots will allow it to reach non-digital buyers and validate higher-margin pricing strategies.

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Operational Scale Through Infrastructure

Alongside its sales expansion, Lo! Foods is prioritizing backend improvements, including enhanced warehousing and technology systems to support high-frequency orders from Q-commerce partners. Rapid fulfillment, consistent availability, and predictive stocking will become increasingly important as SKU count and geographic reach expand.

This backend investment reflects a fundamental truth for scaling consumer brands: brand velocity means nothing without backend reliability. For Lo! Foods, solving for infrastructure early will prevent churn when demand spikes or channels shift.

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Investor Confidence in Sustainable Nutrition

The funding round’s lead investor, Rainmatter Health, brings strategic alignment, especially as India’s preventive health and lifestyle sector grows. Their support signals more than capital - it hints at broader ecosystem opportunities, including wellness partnerships, influencer-driven health challenges, and potential healthcare integrations.

Singapore-based Capital Code also offers international scale potential, further validating Lo! Foods’ long-term global ambitions.

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Protein Chef: The Flagship Brand with Daily Recall

Among Lo! Foods’ product lines, Protein Chef has emerged as its star performer. It features low-carb, high-protein Indian meal formats and on-the-go snacks, enabling consumers to meet their daily protein requirements without lifestyle disruption.

Backed by aggressive branding, packaging innovation, and in-app delivery channel optimization, Protein Chef is scaling both reach and recall. It’s not just a product line - it’s a Trojan horse into India’s nutrition gap.

With rising demand for everyday nutrition and increasing public focus on protein intake, Lo! Foods aims to position Protein Chef as India’s first “daily protein habit” platform.

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Quick-Commerce: The Engine of Mass Adoption

India’s Q-commerce boom is redefining how FMCG startups scale, and Lo! Foods has leaned fully into this momentum. The company reports that over 65% of its revenue now comes from platforms like Zepto, Blinkit, and Swiggy Instamart, showing how deep its penetration has gone.

Rather than treating quick commerce as a temporary growth hack, Lo! Foods has treated it as a structural advantage - reaching impulse-driven customers with high recall, localized availability, and low wait time. The result: consistent reorders, brand familiarity, and habit-driven consumption.

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What’s Next for Lo! Foods?

Following the raise, Lo! Foods will:

• Scale backend and fulfillment operations to support growth
  
• Pilot and analyze offline trials in key urban markets
  
• Expand Protein Chef’s SKU range for new use cases
  
• Complete the rebranding of DiabeSmart to Sugar Smart
  
• Lay groundwork for select global distribution pilots
  

With this strategic capital infusion, Lo! Foods is not just raising money - it’s evolving into India’s next household health food name. By combining nutritional science, operational rigor, and behavioral intelligence, the company is poised to lead the functional food wave in India and beyond.