New Delhi, May 20 -- Organic Tattva, a bootstrapped organic staples and food products brand, is considering bringing in external investors on board, three people familiar with the matter told VCCircle.

The Noida, Uttar Pradesh-based brand, owned and operated by Mehrotra Consumer Products Pvt Ltd, has also appointed an investment bank to run the process, the people said, asking not to be named.

The company, which was incorporated in 2012, has appointed the investment banking arm of Deloitte to scout for potential suitors, one of the people said.

The person also said the company's founders, the Mehrotra family, could offload a majority stake in the process.

A second person said the company is seeking a valuation of as much as Rs 1,000 crore (around $103 million) and that it had made attempts to raise funding previously as well.

The third person, however, said the asking valuation appeared to be "high" but didn't specify any reasons.

For comparison, FMCG giant ITC Ltd struck a deal in April last year to acquire 24 Mantra Organic for up to Rs 472.50 crore, or about 1.5 times the target's revenue of Rs 306.1 crore in FY24, ITC disclosed at the time. On the other hand, Tata Consumer Products Ltd acquired Organic India Pvt Ltd from Fabindia in January 2024 at an enterprise valuation of Rs 1,900 crore, or about 5.85 times its revenue of Rs 324.4 crore for FY23.

VCCircle could not ascertain Organic Tattva's FY26 financials. In 2024-25, the company's revenue rose almost 36% to Rs 387.5 crore from Rs 285.55 crore. Its earnings before interest, tax, depreciation and amortisation (EBITDA) improved threefold to Rs 24.8 crore while net profit surged to Rs 14.15 crore from Rs 2.67 crore in FY24, according to VCCEdge.

Meanwhile, when asked about plans to tap investors, Organic Tattva's co-founder Rohit Mehrotra said: "We are not raising any funds."

Queries sent to Deloitte remained unanswered till the time of publishing this article.

Organic Tattva sells flour, pulses, rice, sugar, jaggery, and grains. It also sells imported products such as organic beverages, breakfast cereals and dried fruits, according to its website.

In a recent interaction with a media publication, co-founder Rohit Mehrotra said the company sources its products directly from over 10,000 farmers growing organic food for the firm. The company tests the products for 250 pesticides and heavy metals at third-party labs.

Published by HT Digital Content Services with permission from VC Circle.