Medusa Beverages Pvt. Ltd., known for its Medusa beer range, has secured ₹56 crore in its Series A funding round led by investors in their private capacity like Amal N Parikh, promoter of Ohm Stock Broker, Ashwin Kedia, co-founder of Alchemy Capital Management. The round also saw participation from additional investors like stock market expert Ramesh Damani, and banker Nikhil Garg; Crest Opportunities, and other high-net-worth individuals (HNIs) from Singapore, the UK, and the UAE.
This is the company's second round of investments, following a pre-series A round where it raised ₹13 crore from some of the same investors that have invested in this round. Mint was first to report this in December that the company was looking to raise ₹120 crore in the coming months. Its Series B -- for another ₹70 crore -- is likely to also be completed by September, founder and CEO, Avneet Singh said.
By FY26, the business is looking to double its production with a new plant in Punjab and fund the starting of a new brewery capable of producing 4 lakh hectolitres of beer annually. By FY25, the company will look to close at approximately ₹180 crore gross revenue and by FY26, it will look to double this to around ₹350 crore, said Singh.
“We want to be on a sustainable yet solid growth path, without the pressure of rapid expansion at the cost of long-term stability. Additionally, we have a leadership position in Delhi within just five years of our product launches. This has reinforced investor confidence in us,” he said.
Launched in 2017, the company initially introduced three beer types with alcohol content between 4.5% and 5.9%. In 2023, it launched a mild beer, Air, and expanded into Uttarakhand, while continuing to sell in Delhi, Punjab, and Uttar Pradesh. In December, Medusa also rolled out a premium co-branded beer, House of the Dragon, in partnership with Warner Bros, targeting high-end customers in major cities.
At present, it relies on third-party manufacturers in northern India, mainly in Uttar Pradesh and Punjab, to produce its beers. These states serve as primary markets for Delhi and neighboring areas. The company is now planning to enter Assam, Andhra Pradesh, and Haryana, with an eventual goal to expand into southern India. Additionally, Medusa will begin operations in Chhattisgarh and is constructing two new breweries to meet increasing demand.
It expects to sell 1.1 million cases in FY25, with most sales coming from Delhi. Singh highlighted that beer consumption in India is still low, averaging just 2 litres per person per year, compared to China’s 25 litres. However, he anticipates a 10-12% annual growth in beer consumption through 2030, driven by the country's young population. Despite setbacks like unseasonal rains affecting last summer’s sales, the company forecasts a rise in revenue to ₹180 crore in FY25, up from ₹133 crore in FY24, largely due to the success of Air.
India's beer market is dominated by major brands like Kingfisher, Budweiser, and Carlsberg. Although beer consumption is still modest, the country’s hot climate and long summers are expected to boost sales. While spirits make up most of the alcohol market, strong beers dominate the beer segment.
In 2023, the beer market in India grew by 6.5%, reaching over 31 million hectolitres, or approximately 400 million cases, according to the Confederation of Indian Alcoholic Beverage Companies (CIABC). India's beer market is still a minnow compared to global rates.
In contrast, the beer consumption between India and other countries. For instance, China sold 420 million hectolitres in 2022, while India only sold 29 million hectolitres. In comparison, the US sold 204 million hectolitres, Brazil 149 million, and even Vietnam surpassed 50 million hectolitres that year.
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