D2C tea startup Vahdam raises Rs 174 Crore in Series D funding round

Vahdam founder
Vahdam founder

Vahdam, located in Delhi, will utilize the funds to expand online and offline, explore new areas, and create new product categories.

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In a Series D fundraising round headed by IIFL AMC’s private equity fund, Delhi-based VAHDAM India raised Rs 174 crore. The investment included existing investors such as Infosys co-founder Kris Gopalakrishnan’s family office, Sixth Sense Ventures, and others.

The direct-to-consumer (D2C) tea company plans to utilize the funds to expand its online and offline presence, expand into new countries, and develop new product categories, according to the company. Vahdam has raised approximately Rs 290 crore so far.
The company also claims that its net revenue for FY21 surpassed Rs 160 crore, up from Rs 75 crore in FY20. Vahdam is likewise growing at a rate of 110 percent per year and claims to be profitable.

The tea company, which has received endorsements from celebrities such as Oprah Winfrey and Mariah Carey, is aiming for a turnover of Rs 500 crore in the next three years.

Vahdam India, founded in 2015 by Bala Sarda, sources teas directly from plantations and produces them in-house. Turmeric, matcha, and immunity-boosting teas are among the products offered by the health business.

Vahdam funding

“The pandemic has accelerated our growth, owing to a shift toward high-quality and trustworthy wellness goods, as well as increased global usage of e-commerce. Bala Sarda stated, “We are thrilled to have IIFL AMC join our objective of developing one of India’s most beloved consumer brands in worldwide markets.”

“We intend to continue increasing our distribution in important areas, both online and offline, with the current fundraising.” We’ll also consider expanding into new categories and markets, investing substantially in R&D, and bolstering our management team,” he said.

“VAHDAM is a rare example of a firm that has successfully brought Indian-made items to international markets. VAHDAM has been able to establish a premium brand and reach out to worldwide consumers via digital channels because of its exceptional quality and creative mixes. In the announcement, Chetan Naik, Fund Manager, Private Equity at IIFL AMC, stated, “It is impressive that the business, under the leadership of Bala, has been able to accomplish this by being very capital efficient and attaining EBITDA profitability.”

Last year, when more at-home consumers began buying online, the six-year-old tea business, along with other internet-first firms, received a huge boost. Unpredictable lockdowns around the country have exacerbated this shift in behaviour.

On this transaction, investment banking company DC Advisory served as the only advisor to VAHDAM India.