Siddhi Capital Secures $135 Million for Second Fund Aimed at Investing in Startups Within the Consumer Packaged Goods Sector

Melissa Facchina’s journey into the operational world began early, diving into her family’s juice manufacturing ventures, sparking a lasting enthusiasm for operational efficiency.

With time, she observed shifts in the food industry landscape, noting a growing public demand for supply chain transparency and higher-quality ingredients and products.

“The traditional big CPG companies weren’t addressing these evolving consumer needs effectively, and unfortunately, our family business fell into that category due to its manufacturing operations,” Facchina reflected.

In the early 2010s, Facchina ventured out on her own, establishing Siddhi Services, a consultancy dedicated to operational outsourcing. This venture contributed to over 500 food and beverage project developments and supported 93 companies toward successful exits.

“We positioned ourselves as solution experts for scaling bottlenecks, earning significant investor attention. During this, I began to notice a concerning dynamic developing between investors and their portfolio companies,” she mentioned.

Facchina observed that investors often placed unrealistic expectations on businesses, expectations they couldn’t possibly meet within given timelines, mainly due to a lack of knowledge on scaling CPG businesses properly.

This led to investors devaluing companies or demanding management changes when objectives were not met, which in turn, saw companies misleading investors and boards to avoid negative repercussions. This prompted Facchina to think of an alternative approach.

This insight gave birth to Siddhi Capital, a growth equity firm with an operational focus, investing in the food and beverage sector. Its portfolio boasts of companies like Aura Bora sparkling water, Thistle food delivery, Mid-Day Squares chocolate snacks, and Magic Spoon cereal.

Facchina, alongside co-founder and managing partner Steven Finn, who brings a rich history of investment through his family office, spearheads the firm. In four years, along with their 24-strong team, they’ve managed a nearly $70 million Fund I, supported significantly by Brian Finn, Siddhi’s chairman and former CEO of Credit Suisse USA.

Navigating the realm of emerging fund management, particularly for women-led teams, proves challenging; women-led funds accounted for roughly 3% of the total $107 billion raised globally last year by venture funds, per Venture Capital Journal.

Yet, Facchina’s initial foray was remarkably swift, closing their first fund within an hour—a feat she credits largely to Brian Finn’s network and influence.

“Although I can’t name them, some of the world’s most prominent private investors have backed us, a testament to the power of merging complementary skills,” she stated.

Siddhi recently sealed a $135 million Fund II, a journey that spanned two years, not the swift hour of Fund I. However, the continuity of about 98% of their initial investors into this fund underscored the sustained confidence in Siddhi’s direction, despite the timeline extending far beyond initial expectations, partially delayed by the onset of the Ukraine conflict with Russia.

During this period, Siddhi didn’t halt its investment activities, incorporating ten new companies, including Ingrediome, a lab-grown protein ingredient provider, and Future Fields, a recombinant protein producer.

Looking ahead, Siddhi Capital aims to channel more substantial investments into fewer, growth-stage companies through Fund II, targeting firms with revenues of $25 million to $100 million. The focus will primarily remain on CPG firms, with a minor allocation towards food tech innovators in fields like fermentation and cellular agriculture.