Direct-to-consumer (D2C) tea brand VAHDAM India has raised $3 million (approximately Rs 25 crore) from SIDBI Venture Capital, marking a strategic investment aimed at strengthening the balance sheet and cash reserves.
This is a strategic investment and not part of a formal funding round. Prior to this, the startup had raised over Rs 200 crore (approximately $25 million) in primary funding.
VAHDAM India’s market presence
Founded in 2015 by Bala Sarda (CEO), VAHDAM India offers India’s finest teas, herbs, and botanicals to consumers in 130+ countries. The startup directly sources its products from partner farmers in India and manages production at its own manufacturing facility.
“Over the past two years, we have focused on reinforcing our core, optimizing our product portfolio, and identifying key levers for scale…With a sharper focus and a more resilient foundation, we are well-positioned for sustained growth over the next three years,” Sarda said.
Sarda added that the brand is making significant investments in product innovation, research and development, and expanding its in-house manufacturing capabilities.
Expanding global footprint and retail presence
The Indian brand has been scaling its offline retail distribution, recently launching its teas and botanicals in over 2,000 Walmart stores across the U.S. It operates through wholly-owned subsidiaries in the USA, Canada, the UK, and Europe.
“VAHDAM India is a flagbearer of young Indian companies taking homegrown products to the world through a disruptive supply chain model and strong operational capabilities. We are excited to invest in VAHDAM as they continue to set new benchmarks in global expansion, product innovation, and value creation in India’s agricultural ecosystem,” said Arup Kumar, Managing Director of SIDBI Ventures.
VAHDAM India is on track to close FY 2024-25 with net revenues exceeding Rs 265 crore and EBITDA profitability.
