Lahori: Beverages firm Lahori eyes Rs 400 crore, taking its valuation three-fold to Rs 2,700 crore

Chandigarh-based beverage manufacturer Lahoriwhich sells non-alcoholic carbonated drinks in local flavors, has held talks with multiple investors to close a Rs 400 crore round that may triple the company’s valuation since its last fundraising, people familiar with the matter said.

The funding round, a mix of primary and secondary transactions, may value the company at Rs 2,600-2,700 crore, up from Rs 900 crore attributed to it two years ago, they said.

Lahori has been in talks with people like Abu Dhabi Investment Authority and Motilal Oswal Financial Services for funding, said one of the people, who did not want to be identified.

The transaction could allow the Belgian investor Verlinvest – founded by family shareholders of beer maker InBev – will sell part of its stake in Lahori, the people said.

Verlinvest is Lahori’s first institutional investor, having invested $15 million in its series A round and currently owns a 21.2% stake in the company.

Lahori is looking to raise around Rs 250 crore in primary capital, and the founders also plan to partially sell their stake.

“The deal is still in the discussion stage… investors such as Peak XV Partners have also held talks,” another person said.

Queries emailed to Motilal Oswal Financial Services, Peak XV Partners (formerly Sequoia Capital India) and Verlinvest did not elicit any response. ADIA declined to comment.

Quick expansion

Lahori was founded in 2017 by three cousins: Saurabh MunjalSaurabh Bhutna and Nikhil Doda, who together own 78.8% of the shares, according to data platform Tracxn.

The company’s most popular product is Lahori Zeera, a cumin-flavoured carbonated drink, sold in 160ml and 240ml sizes. It also sells lemon-based drinks such as shikanji, popular in northern India.

“Lahori is a fast-growing company and the expansion has been rapid. Internally, the thought process is to accelerate the business. The primary capital will be used to expand your manufacturing capacity from the current 5 million bottles per day to more than 8 million bottles per day,” said one of the people cited above.

The company has two manufacturing plants, one in Punjab and another in Gujarat, and is now working to open a new facility in Uttar Pradesh.

Business Snapshot

Lahori CEO Munjal declined to comment on the ongoing situation. financing round. He told ET that the company closed 2023-24 with revenue of Rs 312 crore, up nearly 50% year-on-year, and is on track to grow revenue to Rs 500 crore in this financial year.

Lahori mainly focuses on traditional and modern offline trade channels for its sales, and 99% of its turnover comes from offline distributors, while online, including fast trade, contributes a minuscule portion, he said.

“Nearly 80% of carbonated beverage category sales in India come from general trade… express trade is mainly focused on major cities for now. Therefore, the contribution of quick trade to our sales will grow as penetration increases,” Munjal said.

He said the direct-to-consumer brand has not started selling on quick-commerce platforms outside northern India, which accounts for the bulk of its sales.

“Till last year, up to 75% of our revenue comes from North India, followed by Mumbai and East India,” Munjal said, adding that the company is looking to expand its dealer presence across the country. .

Contrary to the market trend, he said, Lahori derives a large chunk of sales from its larger storage units.

According to the Indian Beverages Association, the non-alcoholic beverage segment, comprising carbonated soft drinks, water, juices and sports drinks, in India is expected to expand to Rs 1.5 lakh crore by 2030 from about Rs 67,000 crore. currently.

In June, Gurgaon-based new-age beverage startup Rockit, which launched an energy drink as its first product, raised Rs 6 crore in seed funding led by consumer-focused companies. venture capital VC firm sauce.

In the last two years, Reliance Retail has also shown increased interest in the category, having bought vintage cola brand Campa in 2022 and acquiring a 50% stake in the Gujarat-based carbonated soft drinks and juice maker. , Sosyo Hajoori Beverages.