VAHDAM India, which sells premium tea and wellness products, has raised Rs 174 crore from investors including IIFL AMC's private equity fund to expand its business globally and enter new categories.
The series D round of funding also saw participation from existing investors, which include 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. With this round, VAHDAM India has raised over Rs 290 crore. The amount raised will be utilised to expand the company's distribution, both online and offline, enter new geographies and introduce new complementary categories. Bala Sarda, founder and CEO of VAHDAM India, said,
"The pandemic has accelerated our growth, given the shift towards high quality and trusted wellness products, and larger adoption of e-commerce globally." With the current fundraising, he said the company plans to continue deepening its distribution in key markets, both online and offline.
"We will also look at entering new categories, new markets, invest heavily in R&D and further strengthen our management team," Sarda said. VAHDAM India aims to take native Indian products to global markets, with a focus on the wellness category. It sells tea, spices and superfoods in India, US, Canada and Europe markets. VAHDAM India posted a net revenue of over Rs 160 crore in the last fiscal, a more than two-fold jump from Rs 75 crore in 2019-20. It achieved net profitability as well. The company now aims to reach Rs 500 crore in revenue over the next three years.
With direct sourcing from farms and estates across India, the company makes premium tea at its in-house manufacturing facility in NCR. Chetan Naik, Fund Manager, Private Equity at IIFL AMC, said, "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, Naik added. VAHDAM India was founded in 2015. It also has offices in the US and Europe.