Reliance Consumer Products Ltd, a division of Reliance Retail, has announced its acquisition of the D2C snack brand TagZ Foods for an estimated INR 28 crore (around $3.5 million) exclusively reported by Inc42.
This acquisition, perceived by industry sources as a distress sale, reflects ongoing shifts in India’s D2C food sector as larger corporations consolidate smaller, niche brands struggling to scale independently.
Founded in 2019 by Anish Basu Roy and Sagar Bhalotia, TagZ Foods gained visibility with its unique range of snacks, including popped potato chips, gourmet dips, and cookies, which were available across online platforms, its website, and retail stores.
The startup received significant attention after featuring on Shark Tank India and securing multiple rounds of funding totaling approximately $3.2 million from investors like 9 Unicorns, Dexter Angels, and others.
TagZ also brought former cricketer Shikhar Dhawan on board as a brand ambassador following his undisclosed investment.
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Despite its initial success, TagZ encountered operational difficulties, halting production several months ago due to scalability challenges. This resulted in the brand’s absence from both online marketplaces and retail shelves and prompted a wave of employee exits.
In FY23, TagZ reported a net loss of INR 10.7 crore against an operating revenue of INR 9.6 crore.
While the final acquisition amount is subject to change following due diligence, this move aligns with the ongoing trend of FMCG giants acquiring smaller D2C brands. Recent examples include ITC’s acquisition of Yoga Bar and Hindustan Unilever’s acquisitions of Oziva and Wellbeing Nutrition, indicating a consolidation phase within India’s competitive D2C market.
