Fody Food Co., the Canadian supplier of low-FODMAP foods, has attracted the backing of new investors.
The Montreal-based business, which sells into the US and the UK, has announced “an equity investment” worth CAD8.5m (US$6.6m).
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Canadian venture-capital fund District Ventures Capital and state agency Export Development Canada (EDC) took part in the funding round. District Ventures has put CAD4m into the business, with EDC investing CAD3m. Existing investors including New Acres Capital and Fody’s management also participated in the round.
Set up four years ago, Fody markets foods low in the FODMAPs, or fermentable sugars, that are seen as a cause in digestive conditions like irritable bowel syndrome. Fody, which markets products including pasta sauces and condiments, has listings in more than 7,000 stores in North America. In the UK, Fody’s customers include Morrisons, the country’s fourth-largest grocer by market share.
Fody said the new money would help it continue to build the distribution of its products in North America and invest in marketing.
“With the incredible support of our new investors, Fody will be able to accelerate our momentum and expand on our sales and marketing activities,” Steven Singer, Fody’s founder and CEO, said.
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By GlobalDataSinger is the co-founder of Canadian gluten-free business Glutino, now owned, after a series of takeovers in the 2010s, by US food major Conagra Brands.
