American venture capital firm Sequoia capital which once backed companies like Google, PayPal, Cisco and Linkedin is now set to invest over $4 million in Best Foods Enterprises, a company which sells ready made food in India.
This is one of the few investments the technology focused VC firm has made outside of its core areas. However, in India, it has previously backed beverages chain Cafe Coffee Day and Prataap Snacks in the Food and beverages sector.
Sequoia is set to invest between Rs 20- Rs 30 crore in the Venture withing March 2013, reports Business Standard.
Musthafa PC, the co-founder of Best Foods (ID Special Food Products) is a computer science graduate who has earlier worked with technology companies. He completed his Post Graduate Programme in Software Enterprise Management from Indian Institute of Management- Bangalore and started the company in 2005, in a 50 square feet room.
It now sells a range of Indian breads, Idli-Dosa batter, Rose Cookies, Diamond Chips and other food items branded as ID Special to nearly 5,000 retail outlets across South India, Mumbai and Dubai.
In an interview published on the Management schools alumni blog last year, Musthafa says that the company now employs over 250 people and has a target of reaching Rs 300 crore turnover in 5 years. He has already declined a multi crore buy out offer from a larger rival and was clocking a Rs 20 crore turnover last year.