Mumbai startup Kaatil is taking Indian chillies to the world, one sauce at a time

India is the world’s largest producer of chillies, cultivating over 500,000 metric tonnes annually—from the fiery Bhut Jolokia in the Northeast, Byadagi chillies in Karnataka to Guntur chillies of Andhra Pradesh. Yet, despite this dominance, India accounts for just 2% of the global hot sauce market, as per ANGRAU Chilli Outlook Report 2023–24. The US, which grows fewer chillies, commands 40% market share. 

However, over the last five years, India’s chilli sauce exports have surged ninefold, making us the second-largest exporter by shipment. But when it comes to global branding, India remains in the background.

Mumbai-based Kaatil, founded by Sagar Merchant and Arjun Panwar in 2022, aims to take India’s chilli flavours to the global condiment industry, filling the gap left by Western-style hot sauces made from imported jalapeños or artificial extracts. 

Kaatil, with its 10-member team, currently offers products in different categories, including hot sauces, hot ketchups, and chilli oils made from Indian chillies. 

How it started? 

Co-founders Merchant and Panwar met in 2009 during their BBA at NMIMS in Mumbai. While Merchant went on to work at Google and later joined his family’s medical equipment business, Panwar built a career in branding and marketing. But their shared passion for food eventually brought them together.

“We recognised that while India is a chili powerhouse, most hot sauces in the market relied on imported ingredients. Why isn’t India leading the premium hot sauce market with its own chilies?” says Merchant.

Merchant honed his culinary skills under UK-based Chef Anjali Pathak in the UK, whose family runs the Indian food brand, Patak’s, gaining exposure to flavour-focused cooking and the packaged food industry, while Panwar contributed his brand-building expertise. 

By late 2022, they began their research, manufacturing trials, and recipe development, leading to a soft launch with warehouses and a website. Kaatil’s true debut happened in January 2023 at The Lil Flea market in Bandra, Mumbai, where it sold over 1,250 bottles in a few days.

“I've always been passionate about food. When I delved deeper into the culinary world, I saw a huge opportunity to showcase India’s indigenous chilies to a global audience,” says Merchant.

A flavour-first approach 

Kaatil uses around five chilli varieties—Jwala, Sankeshwari, Lavangi, and Bhut Jolokia. Its concept is centered around heat levels, ranked from 1 to 9, to simplify the customer experience. For example, Number 4 is medium heat, Number 7 is medium-high, and Number 9 is super-hot.

“We balance heat with flavour, using fresh ingredients like onions, tomatoes, garlic, vinegar, and spices. We avoid chili extracts and artificial enhancers, preserving the natural complexity of chilies through traditional oven, smoke, and air-drying methods,” Merchant explains.

Each product, such as Hot Sauce No. 4 (a smoky blend of Byadagi and Guntur Sannam chilies) and Hot Sauce No. 7 (sharp and pungent with Lavangi chilies), delivers layered flavours, not just spice.

Kaatil initially launched with two hot sauces and one hot ketchup, and later expanded to include chilli oils at heat levels 7 and 9, and a superhot Bhut Jolokia-based Hot Sauce No. 9—the brand’s current bestseller. It currently has seven products.

The products are priced between Rs 275 and Rs 350, targeting consumers looking for both authenticity and flavour.

Breaking into a saturated market

The Indian hot sauce market, valued at $0.50 billion in 2024, is projected to reach $0.70 billion by 2033, with a CAGR of 3.80% from 2025-2033, according to IMARC Group.

Launching into an industry dominated by established players like Maggi, Veeba, Tabasco Heinz, and Wingreens Farms wasn’t easy for the founders.

Initially, the retailers were reluctant to stock a premium, niche product. “We had to work hard to get the initial buy-in. Retailers were hesitant, but we focused on creating authentic experiences for consumers,” says Merchant.

During a large-scale tasting campaign in 2022, Kaatil sold over 20,000 bottles, validating consumer interest. Today, Kaatil’s products are available in over 200 retail stores across Mumbai, with 7% of stores having reordered at least five times.

Since inception, the bootstrapped startup, which was started with an initial investment of Rs 50 lakh, has sold over 100,000 units. It claims to have served nearly 50,000 customers, and generated Rs 1.5 crore revenue in FY24, with a 30% monthly channel growth. 

Kaatil projects a 3X growth in FY25 and envisions reaching Rs 100 crore revenue in the next three to five years.

Growth and expansion 

Kaatil’s growth strategy is multi-pronged, leveraging its own direct-to-consumer (D2C) website, ecommerce platforms like Bigbasket and Nature’s Basket, quick commerce services such as Blinkit, and expanding into international markets, with products already available in the US via Amazon and upcoming plans to enter Dubai.

The brand has already started exporting to the US, Canada, New Zealand, and the UAE, supported by FDA-certified manufacturing partners and key domestic and export certifications.

Kaatil is also working on extending product shelf life from 12 to 18 months to facilitate wider international distribution. “Maintaining freshness while increasing shelf life is a delicate balance, but we’re committed to ensuring our sauces taste just as fresh on day 365 as they do on day one,” says Merchant.

Kaatil uses recycled cardboard for outer packaging and glass jars for easy recyclability. Additionally, its chili oil jars are embedded with plantable chili seed sheets, allowing consumers to grow their own chilies and connect with the product in a deeper, more interactive way.

The startup competes with players such as Troovy, Masterchow, and Naagin. “What sets us apart is our focus on clean ingredients, no preservatives, and a handcrafted process that respects tradition while appealing to modern palates. We’re not trying to tone it down—we’re here for those who crave authenticity with every bite,” Merchant says.

Recognition and future innovations

Kaatil’s quality and taste have been validated globally, winning the prestigious Great Taste Award from the UK, placing it among top-tier global food brands.

In September, the startup raised an undisclosed seed round led by Mumbai-based Prajay Advisors, with participation from Shivaan Ghai and Romil Ratra of Graviss Group. It is currently in the process of raising $4 million (Rs 8.5 crore) to fuel national and international expansion.

Prakash Mody and Jayendra Shah of Prajay Advisors said, “We are very bullish about the category and are backing Sagar and Arjun for their varied experience and deep understanding of the market. Kaatil is perfectly poised to make a dent in the rapidly growing global condiments sector in India and the world.”

The brand now plans to launch new product lines, including Kaatil Sachets—single-serve condiments targeted at B2B customers like hotels, restaurants, cafes, and cloud kitchens—along with dry seasonings and rubs, and Indianised chilli oils. 

It is also planning to enter the Ready-to-Eat (RTE) market with offerings like instant noodles and Indian comfort foods, further expanding its portfolio.

Domestically, Kaatil plans to deepen its presence across India by analysing data to understand which cities or regions are more interested in their products.

“We’re not just focused on sauces. We want to create a range of products that bring India’s chili culture to various aspects of the global food experience,” Merchant concludes.