Siddhi Capital Raises $135 Million for Second Growth-Stage Fund

Siddhi Capital, a US-based growth equity firm, has successfully raised $135 million for its second fund, doubling the size of its initial fund from 2020. The firm, which focuses on food and beverage brands, plans to direct these funds toward growth-stage companies in the consumer and food technology sectors.

Co-founder and managing partner Melissa Facchina emphasizes the firm’s strategy to make fewer but larger investments, highlighting Siddhi’s commitment to supporting companies through its operational arm, Siddhi Services. This approach aims to maximize growth and scalability within the industry. Facchina states that Siddhi is dedicated to investing in innovative solutions that address current health and wellness trends.

The fundraising achievement comes at a time of economic challenges, marked by inflation and high interest rates affecting both fund managers and early-stage brands. However, Siddhi’s strong performance has encouraged nearly all limited partners from its first fund to reinvest. The firm’s focus has shifted toward higher-margin consumer packaged goods (CPG) deals, reflecting a broader industry trend where exit metrics have changed significantly. Acquirers are now more interested in companies with annual revenues between $75 million and $200 million.

Siddhi Capital’s portfolio includes a range of successful brands such as Magic Spoon, Momofuku Goods, and Mid-Day Squares. These investments reflect the firm’s strategy to focus on products with broad market appeal and specific consumer benefits. Facchina underscores the importance of offering products that seamlessly integrate into consumers’ lives without needing extensive explanation or persuasion.

Looking forward, Siddhi Capital intends to expand its investment focus to include health and wellness, beauty, personal care, pet, and alcohol sectors. The firm aims to lead the majority of growth rounds in these areas, maintaining its operational support role to help brands optimize costs and improve margins. Facchina aspires to establish Siddhi as a generational firm, leveraging its in-house expertise to make a meaningful impact on the consumer space.