Paper Boat Bags INR 30 Cr From Trifecta, Advent & A91

Gurugram-based beverage and snack brand Paper Boat has raised INR 30 Cr in two different fundings from Advent Management, A91 Emerging Fund, and Trifecta Venture.

According to the ministry of corporate filings accessed by Inc42, Paper Boat’s parent company Hector Beverages has raised INR 10 Cr in debt from Trifecta in February 2020. As part of this deal, Hector Beverages has issued 100 debentures to Trifecta at INR 10 Lakh per debenture.

Further, Advent Management and A91 Emerging Fund, in November 2019, have invested INR 9.99 Cr each in Hector Beverages. For this transaction, Hector Beverages has issued 1,25,711 shares each to Advent Management and A91 Emerging Fund. The price per share for this transaction stood at INR 775 with a nominal value of INR 20.

Founded in 2010 by ex-Coca Cola executives Neeraj Kakkar and Niraj Biyani, Hector Beverages initially came up with an energy drink Tzinga. Gradually, the company shifted its focus to fruit-based drinks with a range of classic Indian flavours. The company has successfully recreated the popular versions of traditional Indian beverages such as aam panna (raw mango), jaljeera (spicy, tangy lemonade), and other flavours.

Besides packaged juices, the company is now also tapping other FMCG segments. Recently, the brand has also launched India’s traditional snack peanut chikki, coconut water, sesame chikki, aam papad, among others in small size assortments. By tapping into nostalgic flavours, Paper Boat has not only gained success in metros but also in Tier 2 and Tier 3 regions.

Earlier media reports have speculated that Tata Group was in talks to buy out Hector Beverages. But Kakkar had denied stating that Paper Boat is “strongly committed to building a long-term, sustainable – and most importantly – an independent business.”

In the financial year 2019, Hector Beverages had posted a revenue of INR 189.56 Cr, a 62% increase from INR 116.94 Cr in FY18. In FY19, the company also managed to marginally cut down on losses by 1.92% to INR 59.88 Cr, from INR 61.03 Cr posted in FY18.

According to a report by Technopak, the Indian packaged juice market is valued at $200 Mn (INR 1,100 Cr) and is projected to grow at a CAGR of 15% over the next two years. Many other FMCG companies such as ITC, Nestle and others have released alternatives to Paper Boat drinks, but among the new-age brands, Raw Pressery is a direct competitor for Paper Boat and focusses on premium fruit beverages.