Conglomerate Torrent Group has paid Rs 2.5bn ($37m) for a “significant stake” in India-based nutritional product startup Puro Wellness, the Economic Times reported today.
Puro was launched last month by Ruchir Modi a former executive director at Torrent subsidiary Torrent Pharma, and is yet to generate any revenue. It aims to produce nutritional substitutes for food ingredients like salt, sugar, spice and rice.
The company intends to develop healthier ingredients that would taste similar to the originals, but which would ideally have less of the health risks. The Torrent investment will go to marketing, working capital, research and development.
An investment banker aware of the development told ET: “It is a rare case, where an investor invests a large amount in a pre-revenue stage in a startup.”