Lahori, a beverage brand, nears Rs 450 crore fundraise from Motilal Oswal, others

The company will use the fresh funds to expand into newer markets and promote its products more aggressively as it goes after a wider customer base.

Archian Foods, the company that sells Lahori Zeera, Lahori Nimboo, Lahori Shikanji and other beverages, is in advanced stages of raising Rs 400-450 crore in a fresh round from Motilal Oswal’s private equity arm and a clutch of other investors, sources aware of the developments told Moneycontrol.

The company will use the fresh funds to expand into newer markets and promote its products more aggressively as it goes after a wider customer base. Investors are backing beverage brands like Lahori at a time when the competitive intensity in the space is going up.

“Lahori was initially planning to raise a smaller amount but then increased the total fundraise as existing investors decided to dilute some more stake and make way for new ones,” one of the persons cited above told Moneycontrol.

The Punjab-headquartered company, which has a strong presence in the northern regions of India, has previously raised around Rs 170 crore ($20 million) from Belgium-based Verlinvest, as per Tracxn, a private markets data provider, showed. While the company was valued at around Rs 700-750 crore in 2022, “ongoing negotiations value the company at around Rs 2,500 crore,” the person cited above said.

The increase in valuation was largely because the company has grown in scale, too. In FY22, the company had a top line of Rs 38 crore. Then in FY23, Lahori recorded a revenue of Rs 215 crore which further increased to Rs 316 crore in FY24, Tracxn data showed. The company is now on track to record around Rs 550-600 crore in revenues, the people cited above said.

Interestingly, the company, which was started in 2017, has been profitable since at least FY22. In FY22, the company generated a profit of Rs 3 crore then the bottom line increased to Rs 7.6 crore in FY23 and further grew to Rs 23 crore in FY24.

It is expected to maintain a similar trajectory going forward, too.

Lahori and Motilal Oswal private equity did not reply to Moneycontrol’s queries.

The deal, which comes at a time when the demand for drinks is on the rise, is yet another bet that Motilal Oswal is taking on India's burgeoning startup market. It has already backed Zepto, Swiggy, Captain Fresh across various deals and through different business verticals.

Drinks in demand

Lahori is raising money at a time when the non-alcoholic ready-to-drink (NARTD) segment is growing on the back of strong consumer demand. The NARTD market, which includes bottled water, stills (like fruit juices), and other sparkling beverages, was valued at around Rs 58,000-60,000 crore in 2022, a growth of about 30 percent over 2021 and is projected to compound further in the coming years, data showed.

The market is also expanding because newer players are entering the space. While Coca Cola’s Maaza, a mango-based drink, became a Rs 8,500 crore business in 2024, giants like Reliance Industries have revived old brands such as Campa Cola by bringing them under their fold as demand soars.

While large conglomerates with deep pockets can flex their distribution muscle to expand their business, new-age companies like Lahori can move with agility and innovate faster to create a stronger brand which can augur well for an up and coming brand.