Vahdam’s existing investors, including a consortium of Sixth Sense Ventures affiliates, the Mankind Group family office, Infosys founder Kris Gopalkrishnan’s family office, Urmin Group and White Whale Ventures, also participated in the round
Tea brand Vahdam India has raised ₹174 crore ($23.6 million) as a part of a Series D round led by IIFL AMC’s private equity fund.
The company’s existing investors, including a consortium of Sixth Sense Ventures affiliates, the Mankind Group family office, Infosys founder Kris Gopalkrishnan’s family office, Urmin Group and White Whale Ventures, also participated in the round.
Following the current round, total funds raised by Vahdam India stands at ₹290 crore. Post this funding, the company’s valuation stands at about ₹700 crore, said an individual aware of the discussion.
According to the company, the sum raised will be utilized to expand distribution across online and offline channels, as well as for entering new geographies and foraying into new complementary categories.
The six-year-old startup retails tea, spices and superfoods across the world under a home-grown label. By leveraging technology and cutting out middlemen, the brand looks to disrupt the traditional supply chain of products such as tea and spices in India.
Vahdam directly sources tea and spices from farms and estates across India, and also owns a manufacturing unit in the national capital region.
“Vahdam is a rare example of a company, which has successfully taken products of Indian origin to global markets. With its superior quality and innovative blends, Vahdam has been able to create a premium brand and reach out to global consumers via digital channels. It is remarkable that the company under the leadership of Bala has been able to execute this by being highly capital efficient and achieving EBITDA profitability," said Chetan Naik, fund manager, private equity at IIFL AMC.
In FY21, Vahdam India more than doubled its income and clocked over ₹160 crore in net revenues, as compared to ₹75 crore in FY’20. The company now plans to reach ₹500 crore in revenue, over the next 3 years.