Tea extractor and owner of the cafe Vahdam Teas Pvt Ltd has been raised ₹250 million (USD 3 million) from Sidbi Venture Capital Ltd is used to increase cash reserves and enhance global expansion.
Founder and CEO Bala Sarda told Mint. However, the company has no immediate plans to grow its cafe business beyond a single store in New Delhi.
“We will continue to expand tea and infusions, botanicals and herbal supplements in the core market,” Salda said. “For the past two years, the company has focused on key leverages to determine scale. With the focus and a more resilient foundation, we will continue to grow well over the next three years.”
Growth Strategy
Arup Kumar, managing director of Sidbi Ventures, a wholly owned subsidiary of Sidbi Ventures, said the investment will support Vahdam’s efforts to expand operations and strengthen supply chains.
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Vahdam ₹Net income was 2.65 million yuan and profitable in operation. It operates internationally through its subsidiary Vahdam Teas Global Inc.
The company’s main markets include the United States, Canada, Europe and the United Kingdom, online sales, and retailers such as Walmart and Costco. “We now have about 2,000 Walmart stores in the U.S. market,” Sada said.
Vahdam competes with peers like Newby Teas, and among retail chains there are chains such as Teabox, Brewhouse Tea, Dorje Teas, Chai Point and Chaayos. Direct-to-consumer brands buy tea, spices and other superfoods from Indian farms and estates.
At the merger level, the company reported revenue from operations ₹225.2 million in fiscal year 224, up 10% from the previous year ₹According to the latest annual documents from the Department of Corporate Affairs, $203.6 billion is available through business intelligence platform Tofler. The company’s net loss narrowed to ₹1.76 million in fiscal year 24 ₹550 million in the previous year. This is mainly due to lower spending on inventory, finished products and stocks.
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As of fiscal 24, Sarda owned most of its business (more than 63%), while the rest were held by investors such as Sixth Sense India, IIFL India, etc. Sada said the company has raised ₹So far, its various fundraising activities have so far. It also counts fireside businesses; home offices of owners of Mankind Pharma, SAR Group and Urmin Group; and Abhishek Bachchan and Sachin Tendulkar are investors.
According to Statista, the value of the global tea market is around 2024 and is expected to grow to $134.96 billion by 2032. China remains the highest tea producer, generating 3.3 million tons in 2023, while India and Kenya are also major contributors.
