Manam Chocolate is a Hyderabad-based craft chocolate brand that has already become a cult-following and is reported to be in the final stages of its first venture capital funding round. As per the sources aware of the situation, the company is in negotiations with Omnivore VC to lead this maiden institutional round. This is a major shift for the brand since it aims to expand its business to a larger scope than it is currently operating in and to establish itself in the emerging premium confectionery market in India.

Strategic funding and full-stake model

The next financing round is set to be a breakthrough point for the young brand. The initial deal negotiations would imply a round size of between $5 to $10 million. It is reported that the end value may end up being even higher should the two companies choose to go on an even more aggressive “hyperscale” approach. The investment would most probably be used to drive the brand into many other parts of India rather than being restricted to Hyderabad, where it has a much stronger presence.

Although the craft chocolate movement in India is still nascent, the changing tastes of consumers have raised the interest of venture capital in the industry. Increasing numbers of Indian consumers seek high-quality, artisanal substitutes to mass-produced industrial sweets, and thus brands such as Manam that provide a stark point of contrast in terms of process and taste are starting to be considered as good investment targets.

Established in 2023 by Chaitanya Muppala, Manam Chocolate, translated as “We” or “Us” in Telugu, has developed a model of operation unique to the conventional chocolate producers. This brand has a full-stack model, which implies that it has control over the value chain. This starts with the agricultural level, where the company cultivates its own cacao and goes all the way to its premium retail experiences.

The majority of chocolate producers in India follow a business approach that is based on the “bean-to-bar” model, although Manam goes a bit further, as it does not simply produce the chocolate using the bean but the fruit itself. The brand will unlock the potential of Indian cacao by controlling how the cocoa is processed after harvesting (fermentation and drying) so that the flavour can be fully realised. This “tree-to-bar” strategy will enable Manam to produce a product that will defy the homogenization of large industrial brands, which the company alleges to do at the expense of the soul of chocolate.

Expansion and premium offerings

The Manam Chocolate Karkhana in Hyderabad, in Banjara Hills, is now a physical location building that the brand can be identified by and which has been known to offer a vivid experience and its creative design. More recently, the brand increased its retail presence in the capital of the country by opening an experience store in Delhi. These full experience centres are meant not only as retail stores, but as a place where customers can experience the art of making chocolates.

These funds of the maiden VC round will play a significant role in replicating this success in other key metropolitan regions. Other than experience centres, the brand is experimenting with a variety of models, such as high-street retail, travel retail in airports, and a shop-in-shop model. Through creating a multi-channel distribution network that incorporates e-commerce and hyper-local delivery, Manam intends to create its high-quality offerings affordable to more people but without compromising its artisanal values.

Conclusion

The expected collaboration with Omnivore VC is a new chapter for Manam Chocolate. With institutional support, the brand can shift towards a successful regional brand to a national leader in the craft chocolate segment. The investment will not only facilitate physical growth, but it will also help the company to focus more on its vertically integrated supply chain, as it is the main competitive moat. With the brand ready to go to scale, its commitment to soulful chocolate and chocolate made of Indian origin cocoa remains to reset the category of luxury gifting and self-indulgence in the Indian market.