F&B Brand Paper Boat Secures $50 Mn From Singapore Sovereign Fund GIC

Hector Beverages, the parent company of popular beverage brand Paper Boat, has secured INR 400 Cr ($50.1 Mn) from Lathe Investment Pte Ltd, which is wholly owned by Singapore-based sovereign fund GIC.

According to the regulatory filings accessed by Inc42, Hector Beverages has allotted 50,27,273 class D compulsorily convertible preference shares (CCPS) at an issue price of INR 795.66 apiece to GIC amounting to INR 400 Cr. 

Following the investment, GIC will own a 25% stake in Gurugram-based Hector Beverages.

Earlier last week, Mint reported that GIC was looking to invest in Paper Boat at a valuation of $250 Mn to $280 Mn.

Including the current fundraising, Paper Boat has raised INR 448 Cr as equity funding and INR 10 Cr as debt funding to date.

Set up in 2010 by former Coca-Cola executives Neeraj Kakkar and Niraj Biyani, Hector Beverages runs the F&B brand Paper Boat that sells fruit-based drinks in Indian flavours such as aam panna (raw mango) and jaljeera (spicy, tangy lemonade), among others . Besides, it also sells dry fruits and healthy snacks including chikki and aam papad. 

Currently, Paper Boat has a presence in metro cities along with Tier-2 and 3 cities in India. 

In 2020, Paper Boat secured INR 28 Cr from Sofina Ventures, A91 Emerging Fund I, SCI Growth Investment II and Catamaran Ventures. Prior to that, the brand garnered INR 20 Cr from 

Advent Management and A91 Emerging Fund and INR 10 Cr debt funding from Trifecta.

Back in 2018, Tata Group was said to be in talks with Paper Boat’s parent company to buy out the startup. However, the deal did not materialise and later on, Paper Boat’s founder also denied the development.

In the financial year 2021-22, Paper Boat’s revenue widened to INR 243 Cr from INR 231 Cr earned in the previous fiscal year. Meanwhile,  its consolidated losses reduced to INR 64 Cr in FY 2021, down from INR 100 Cr losses incurred in the corresponding period, according to Tofler. 

In India’s food and beverage (F&B) market, it faces competition from the likes of Lahori and Raw Pressery. 

The country’s F&B industry has been expanding by leaps and bounds and is further estimated to become a $156.25 Bn market by 2026.