The Anti-D2C Strategy: How Viraj Bahl Built Veeba by Winning B2B First
He sold his house to fund a dream after a catastrophic failure. This is the story of Viraj Bahl and the contrarian playbook he used to build Veeba.
At the lowest point of his life, financially ruined after his restaurant business collapsed, Viraj Bahl made a decision that few would dare to. He turned to his wife, Ridhima, and asked if they could sell their newly bought house to fund one last attempt at a business. She agreed without hesitation. That ₹50 lakh bet, born from the ashes of a public failure, became the seed capital for Veeba, a food brand that is now a dominant force in the Indian FMCG market, projected to cross the ₹1,000 crore revenue mark.
This is not just another startup story. It's a masterclass in resilience, strategic thinking, and building a business on a foundation of hard-won lessons. It’s the story of a second-generation entrepreneur who deliberately chose the harder path to forge his own legacy.
Check out the video of the conversation here or read on for insights.
crucible The Crucible of Legacy and Ambition
Viraj Bahl’s entrepreneurial journey was shaped long before he founded Veeba. Born in Delhi to Rajiv and Vibha Bahl, the founders of the prominent food business "Fun Foods," he was immersed in the industry from a young age. While his passion for the family business was clear, his path was not one of inheritance. His father laid down a formidable challenge that would define the course of his life:
"You're welcome to join the business - but first, earn your own comfort."
This gauntlet forced Viraj to prove his mettle independently. After his time at Delhi Public School, R. K. Puram, he pursued a demanding 3.5-year course in Marine Engineering at Singapore Polytechnic. This led to a high-pressure career as a second engineer with the global shipping giant Maersk, working on oil rigs and merchant navy ships. By 2002, having met his father's challenge with a handsome salary, he finally returned to join Fun Foods.
This experience in an unrelated, unforgiving industry instilled a profound sense of personal accountability and a hands-on work ethic, stripping away any sense of entitlement.
🔥 From the Ashes: A "Naked Public Failure"
After six years of contributing to Fun Foods' growth, Viraj's world was upended in 2008 when his family sold the business to Dr. Oetker for a reported ₹110 crore. Vehemently against the sale, he found himself with his share of the proceeds and the freedom to forge his own path.
His first venture was a Quick Service Restaurant (QSR) chain named "Pocket Full," launched in 2009 with the grand ambition of creating the "Indian McDonald's." The venture was a catastrophic failure. He scaled too quickly, chose poor locations, and hemorrhaged money. He describes the experience vividly:
"Restaurants are quite a naked business. If they stay empty, you become a public failure. Friends see it, family sees it. You feel exposed."
By 2013, the business had collapsed, leaving him financially ruined. This public humiliation, however, became the very blueprint for Veeba. The frustration of being unable to source high-quality, innovative sauces locally for his restaurant—forcing him to import products like Southwest Chipotle at "insane prices"—sparked the core insight for his next venture.
🚀 The Veeba Playbook: A Contrarian Path to Dominance
In 2013, armed with the ₹50 lakh from selling his house and the painful lessons from his failure, Viraj founded Veeba, naming the company after his mother, Vibha.
The B2B Beachhead Strategy
In an era where most consumer brands launch as digital-first, Direct-to-Consumer (D2C) businesses, Viraj did the exact opposite. He started Veeba exclusively as a Business-to-Business (B2B) supplier to QSRs. This was a masterful, de-risking strategy designed to build a stable foundation.
The first six months were a grueling test of perseverance. He recalls visiting the Domino's Pizza office relentlessly, "five times a week for six months," until they finally agreed to audit his newly established plant in Neemrana, Rajasthan. Passing their stringent quality checks, Veeba secured its first major order: 20 metric tons of mayonnaise.
"That was our entire month's production back then. Today, we make that in 20 minutes."
This single order was the lifeline that validated his entire business model. The credibility from the Domino's deal quickly opened doors to other international giants like KFC, Pizza Hut, Burger King, Taco Bell, and Starbucks.
The Explosive B2C Pivot
With a robust manufacturing base and a reputation for quality, Veeba pivoted into the retail market in 2015. The growth since has been explosive.
Revenue Shift: Today, the B2C distribution business accounts for an estimated 92% of revenue, while the foundational B2B segment is the remaining 8%.
Financial Growth: The company's revenue has seen dramatic growth, hitting ₹542 crore in FY22, ₹811 crore in FY23, and is projected to surpass ₹1,000 crore in FY24.
Distribution Might: Veeba is now present in over 700 towns, supported by 28 depots and a network of more than 150,000 shops. More than 70% of its retail revenue comes from general trade—the local Kirana stores of India.
"Loss-Making by Choice"
This aggressive scaling is fueled by a unique financial philosophy Viraj calls being "loss-making but by choice." The company deliberately plans for an EBITDA margin between -0.5% and +0.5%, reinvesting nearly all potential profits back into advertising, new product development, and distribution expansion to accelerate growth.
Funding the Vision
Veeba has raised a total of $58.3 million over 9 rounds, attracting prominent investors who bought into Viraj's contrarian vision.
Seed: DSG Consumer Partners (its first institutional backer)
Series A ($6M): Saama Capital, DSG Consumer Partners
Series B ($6M): Saama Capital, Verlinvest
Series C & D (>$23M): Verlinvest, Saama Capital, DSG, Sixth Sense Ventures
The company's last major funding round in 2019 placed its valuation at ₹1,860 Crore (approx. $220 million).
💡 The Secret Sauce: Product, People, and Technology
Veeba’s competitive advantage is built on three pillars:
Relentless Product Innovation: Veeba sidestepped legacy brands by introducing a portfolio of international flavors (Sriracha, Chipotle Southwest) and "better-for-you" formulations with reduced fat, lower sugar, and no artificial preservatives. This is powered by a strong in-house R&D center in Gurugram.
Tech-Enabled Distribution: To manage its vast offline network, Veeba uses a sophisticated tech stack, including a Sales Force Automation (SFA) platform and a Distribution Management System (DMS) from FieldAssist. This provides real-time visibility and has reduced product returns by 15%.
A People-First Culture: Viraj is a vocal critic of "hustle culture," labeling the 70-hour work week debate as "utter nonsense" for employees. His philosophy is that extraordinary effort can only be demanded if the rewards are shared proportionately. As a result, he claims Veeba employees do not work more than 40 hours a week.
👑 The Vision: Building the Next Indian FMCG Conglomerate
Viraj Bahl's journey has come full circle, from a failed restaurateur dreaming of success to a respected industry leader and a judge on Shark Tank India.
His ambition now extends far beyond sauces. The parent company has been rebranded to VRB Consumer Products Pvt. Ltd. with a clear "House of Brands" strategy. New brands like WokTok (pan-Asian sauces and noodles) and Tasty Pixel have already been launched. The vision is to build a diversified FMCG powerhouse, launching new brands and entering new categories every year. He is no longer just building a company; he is building an institution, a testament to a journey forged in the crucible of failure and fueled by an unbreakable entrepreneurial spirit.
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