The tea brand from India, VAHDAM India, flying its wings in the D2C niche, raised $3 million (approx Rs 25 crore), which was fundraised from SIDBI Venture Capital. This also comes on the heels of the company’s previous rounds of primary funding that has raised more than Rs 200 crore ($25 million). The new investment is supposed to boost up the company’s balance sheet, cash reserves and expansion plans.
VAHDAM India, founded by Bala Sarda in 2015, is India’s finest teas, herbs & botanicals homegrown brand, which has created a niche for itself as a prominent homegrown brand to reach the global consumers. Unlike most other fair trade brands, its model is indirect, which means it sources from partner farmers in India and manufactures its products in India. In the USA, Canada, the UK and Europe, the company operates through wholly owned subsidiaries, thus strengthening its position as one of the leading tea houses in the world.
The last two years were spent in focusing on core operations, optimizing the product portfolio, and discovering the growth levers for VAHDAM India. Innovation in products, and research and development (R&D) as well as investment in expanding in-house manufacturing ability have been significant. In these efforts, he is delivering on sustained growth over the next three years, based on a resilient business foundation.
The company also has done well in the offline distribution. Last month, VAHDAM India achieved a big milestone of inclusion of its teas and botanicals in over 2,000 Walmart stores across the US. This is part of the brand’s effort to penetrate a wider consumer base and increase its market share in the important global areas.
Financially, VAHDAM India is in line to record strong growth and positive EBITDA in the current financial year. For the financial year 2024-25, the company has also projected the net revenues of more than Rs 265 crore and company will continue to be profitable. The brand emphasizes on its operational efficiency and a great curated product line which has made it position for long term success.
For the recent fund raising, Bala Sarda spoke about building a global brand that aspires to project India as a rich heritage in teas and botanicals. He also mentioned about the brand’s commitment to sustainability and fair trade practices, which are appealing to consumers across the world.
However, the infusion of fresh capital from SIDBI Venture Capital further enunciates the confidence of investors in VAHDAM India’s vision and its growth potential. VAHDAM has a robust strategy, innovative products, and of course an expanding presence in international markets, making it poised to be a leading global tea brand.
