According to the company, it will deploy a large part of the funding towards development of new products, team expansion and brand investments.
Founded in 2022, by Keshav Biyani and Prabhu Karthikeyan, The Good Bug is a wellness brand focused on gut health and looks to address issues such as bloating, constipation, weight management and others through the gut.
“Our journey has been about more than just business; it’s about transforming lives. We are excited to have Fireside Ventures as our partner in this journey,” said Biyani, in a statement.
Previously, Biyani was the head of strategy and emerging business at Future Group India. Karthikeyan is a serial entrepreneur in the consumer space and previously cofounded men’s grooming brand United Consumer Brands and hair care brand Athena Life Sciences.
Currently, The Good Bug has a base of 100,000 customers, the company said.
“As consumers are getting more health-conscious and looking for safe and effective solutions with long term benefits; we see a huge potential for gut health. The Good Bug is at the forefront of this segment with their innovative and effective products,” said Ankur Khaitan, principal, Fireside Ventures.
With the pandemic, the D2C space has seen a significant infusion of capital with the increase in online shopping by customers. The past few months have also seen massive consolidations in the sector, with large fast-moving consumer goods (FMCG) brands increasingly wanting a slice of the pie.
Earlier this year, ecommerce rollup brand Goat Brand Labs, backed by Flipkart Ventures and Tiger Global, acquired clothing and home-decor brand Chumbak for an undisclosed amount.
Last December, consumer giant HUL acquired a 51% stake in plant-based supplement brand Oziva for Rs 264 crore and is expected to acquire the remaining 49% over the course of a three-year period.