Online tea brand Vahdam Teas has secured $1.4 Mn (INR 9 Cr) in a round of funding led by VC firm Fireside Ventures. The startup’s existing investors – Singapore Angel Network, Mumbai Angels and some HNI investors – also participated in the round.
With this, some of the angel investors from the Seed round have also exited the venture. Post the investment, Fireside Ventures founder Kanwaljit Singh will be joining Vahdam Teas as a board member.
Commenting on the development, Singh stated, “India is well known globally as a producer of the finest Teas and it’s heartening to see a young brand and a young, dynamic entrepreneur leading the charge to showcase the best of Indian Teas to consumers across the world. Vahdam Teas has built a great supply chain & traction in the last 2 years and we are privileged to join him on this journey and hope to help build an iconic Indian brand that’s enjoyed by consumers across the world.”
As part of its second institutional fundraise, Vahdam Teas has picked up an additional $310K (INR 2 Cr) in a secondary transaction. According to sources, the Delhi-headquartered startup will be utilising the newly-raised financing to expand its product portfolio and introduce new categories of flavoured tea and wellness tea.
A portion of the capital will also be used to bolster its warehousing and logistical capabilities in the US, which currently accounts for over 70% of Vahdam Teas’ total sales. The funding will also enable the platform to market its brand aggressively, in a bid to penetrate deeper in the Indian market.
Speaking about the latest funding round, Vahdam Teas founder Bala Sarda said, “Over the last 2 years, we have worked very hard in setting up an efficient supply chain, right from the estates of India to our consumers in the US and other parts of the world, with a sole vision to make available the freshest cup of tea to consumers by leveraging technology. And, we plan to now further penetrate our key markets with customer acquisition and marketing. It is an honour to have Fireside Ventures come on board, with their massive experience in building consumer brands.”