The funding will be used by Lahori, a Punjab-based beverage company, to double focus on its brand’s growth through offline and online expansion, as well as to strengthen the brand’s national presence in retail chains.
Lahori, a direct-to-consumer beverage producer, has acquired a $15 million investment from Verlinvest, a consumer-focused investor located in Belgium, in return for a minority ownership, according to a press statement. It was not stated how much of a share Verlinvest had purchased.
The Series A funding will be used by the Punjab-based firm to double down on its brand’s growth through offline and online expansion, as well as to strengthen the brand’s national presence in retail chains. According to the press release, “The new fund will also be used for the development and marketing of new category-creating items”.
Verlinvest is a multinational, family-owned evergreen investment firm that manages multibillion-dollar assets. It has made investments in various firms in India, including Sula, Veeba, Epigamia, Byju’s, Purplle, and Wakefit.
Lahori intends to grow its footprint across India in the next three years, capitalising on its unique position as a provider of desi beverages. “We aim to provide Indian customers with beverage alternatives that appeal to their taste pallet,” said Lahori cofounder Saurabh Munjal. “We see that the ethnic drinks market in India is neglected, and we have the ambition to become a major influence in this field.”
According to the release, India’s non-alcoholic beverage market is expanding at a breakneck pace and is predicted to top $18 billion by 2026.
Given that the bulk of the population lives in Tier-II and Tier-III cities, price points have been an important factor in entering markets and creating a brand with client loyalty. The Indian market remains underserved, with per capita consumption at around 5.5 litres per year, despite the population size, as compared to per capita consumption in certain other countries, such as the United States, which is believed to be at least 20 times greater.
“Beverages are a primary priority area for us given the history of our Belgian family shareholders,” said Shagun Tiwary Shah, investor of Verlinvest. Lahori has become a dominating player in the industry in a relatively short period, delivering a product that the public like. Among all the beverage companies we have seen so far in India, Lahori stood out for its taste, product innovation, and customer pull. “