Tia Lupita Closes $2.6 Million Seed Round to Accelerate Household Penetration
Better-for-you Mexican food brand Tia Lupita has closed a $2.6 million funding round led by Santatera Capital and GBM Ventures to support product innovation and expansion into new markets. The entire round was raised by Mexican investment institutions.
Launched in 2018, California-based Tia Lupita produces a portfolio of clean label hot sauces, salsa macha (Mexican chili crisp) and grain-free tortillas and tortilla chips made with a base of nopales (cactus), cassava and okara flour. The brand’s products are currently available in over 5,000 stores nationwide including Whole Foods Market, Sprouts Farmers Market, Wegmans, H-E-B and Fresh Market.
Most recently, the brand landed its Salsa Verde and Chipotle hot sauce varieties in select Target stores across Southern California, Texas and the New York City metro area.
Tia Lupita’s new financing follows an $86,000 WeFunder campaign in March 2022 and a convertible note of an undisclosed amount, also brought in last year. To date, the brand has raised approximately $4.5 million.
The round marks Santatera’s “follow-on investment” in Tia Lupita, as the Guadalajara, Jalisco-based venture capital fund also contributed to the brand’s convertible note last year.
Hector Saldívar, founder and CEO of Tia Lupita, told NOSH that Santatera’s continued investment is “validating and comforting,” representing its confidence in the startup’s potential in the BFY Mexican food segment.
“They’re really excited to be part of our journey and, on top of that, they bring a lot of resources that startups do not have on hand. They provide support in logistics and operations, marketing, R&D […] all additional benefits without cost,” said Saldívar.
Santatera’s startup portfolio also includes Mezcla protein bars, Wildwonder sparkling probiotic juices and Onda tequila seltzer.
Tia Lupita’s new capital will go towards hiring a head of sales and a head of marketing and strategy, as well as accelerating R&D and expanding into new markets. Saldívar said the funding will help the brand “focus on building [its] base and improving [its] household penetration through promotional tactics.”
Looking ahead, the brand is gearing up to unveil two new strategic partnerships, including a collaboration with one of the “most renowned” Mexican chili powder brands in the U.S. and another with an unnamed professional sports team.
According to a report from market researcher Technavio, the global Mexican food market size is expected to grow by $113.85 billion between 2021 and 2026. North America is projected to account for 58% of that growth.
Other brands vying for a piece of the category include Siete, which closed a $90 million minority investment from Stripes Group in 2019, SOMOS, which recently expanded its ready-to-eat lineup with the addition of two Salsa Macha products and Masienda, a brand working to bring heritage Mexican products to the U.S.
