India’s Lahori in advanced talks to raise US$47.6M, eyes major valuation surge
INDIA – Lahori, a Chandigarh-based beverage company known for its popular cumin-flavored carbonated drink Lahori Zeera, is reportedly in advanced discussions to secure a Rs 400 crore (US$47.58M) funding round.
This round, a combination of primary and secondary transactions, is projected to increase Lahori’s valuation nearly threefold to an estimated Rs 2,600 (US$309.2M)-2,700 crore (US$321.1M), a significant jump from the Rs 900 crore (US$107M) valuation in its last fundraising round two years ago.
Sources quoted by the Economic Times indicate that investors including the Abu Dhabi Investment Authority, Motilal Oswal Financial Services, and Peak XV Partners have expressed interest in the financing deal.
One of Lahori’s existing investors, Belgian firm Verlinvest, which initially invested US$15 million during Lahori’s Series A funding and holds a 21.2 percent stake, may partially exit through the upcoming funding round.
Founded in 2017 by cousins Saurabh Munjal, Saurabh Bhutna, and Nikhil Doda, Lahori has seen rapid growth.
Currently, the three founders collectively hold a 78.8 percent stake in the company, according to data platform Tracxn.
Lahori plans to raise approximately Rs 250 crore (US$29.7M) in primary capital, while the founders are also considering a partial sale of their holdings.
According to sources close to the transaction, the company aims to use the new funding to scale its manufacturing capacity, expanding from its current production level of 5 million bottles per day to over 8 million bottles per day.
The company’s cumin-flavored Lahori Zeera and lemon-based shikanji drinks are highly popular across northern India.
With two manufacturing facilities in Punjab and Gujarat, Lahori is now planning to establish a new plant in Uttar Pradesh to meet growing demand.
CEO Saurabh Munjal noted that Lahori finished the 2023-24 fiscal year with Rs 312 crore in revenue, marking a nearly 50 percent increase from the previous year.
The company is on track to further grow its revenue to Rs 500 crore (US$59.5M) in the current financial year.
While primarily focused on offline sales through general and modern trade channels, Lahori generates 99 percent of its turnover from offline distribution.
The online and quick commerce segments currently contribute minimally but are expected to grow as e-commerce expands into new regions.
Munjal emphasized that the brand is currently available on quick commerce platforms only in northern India, which is its core market.
The non-alcoholic beverage market in India, encompassing carbonated drinks, water, juices, and sports drinks, is poised for significant growth.
The Indian Beverage Association projects this segment to expand from Rs 67,000 crore (US$7.9B) to Rs 1.5 lakh crore by 2030, reflecting the vast potential within this sector.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE
