Rio Innobev has secured Rs100m ($1.2m) in a pre-Series A funding round as the Indian drinks group aims to triple the amount of stores in which its products are sold.
The funding round was led by local early-stage venture capital firm Atomic Capital.
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Founded in 2014 and headquartered in the Indian city of Pune, Rio Innobev’s range includes Rio Bubbly Fruit Drink and Rio Boom Energy Drink.
In a statement, Rio Innobev said the funding marks a “pivotal milestone as it prepares for aggressive nationwide expansion and product innovation”.
Rio Innobev CEO and co-founder Rahul Sangoi added: “This fundraise marks more than just capital, it is a validation of everything we have built and a springboard for where we are going.
“With this backing, we are doubling down on what we do best, expanding our footprint aggressively, innovating with speed, and delivering products that excite and energise.”
The company sells its products in more than 35,000 retail outlets in the Indian states of Maharashtra and Gujarat.
Rio Innobev will use the latest investment to support “four growth pillars”, namely “distribution expansion, brand building, product innovation, and manufacturing upgrades”.
The company intends to “scale to 1,000,000 outlets” in the coming three years and expand its omnichannel presence through modern trade networks and quick-commerce platforms, the statement added.
Rio Innobev said it has maintained positive EBITDA since inception, growing from five employees to 145 and scaling production from 750,000 units in its first year to over 15 million cans and bottles annually.
The company’s products are manufactured at its facility in Pune.
Rio Innobev’s expansion plans include “sharpening its focus on building a diverse portfolio” across the “indulgence, health, and functional beverage categories”, with the goal of becoming a Rs5bn brand within four years.
Its products are sold at retail chains including Dmart, Reliance Retail and 7-Eleven. Its online stockists include platforms such as Zepto, Swiggy Instamart and Blinkit.
Atomic Capital founder Apoorv Gautam said: “We were immediately drawn to Rio Innobev because they’ve built something rare, a brand that’s not only disruptive in its category but has also demonstrated strong fundamentals.
“They’ve proven they can scale without losing sight of what makes them special, sharp product-market fit, a clear brand identity, and an ambitious but disciplined execution style.”
