Source: afaqs!
After three years, conventional beverage brand Lahori has raised ₹200 crore (about $23 million) in funding from Motilal Oswal’s private equity arm. The investment also comes as Lahori eyes ramping up its production capacity and distribution network in India.
The company recently filed these details with the Registrar of Companies (RoC), and the deal value is 4,997 Series B preference shares to be issued to Lahori for a price of ₹4,00,252 each. The funding will be used to expand the company and the company’s operations. The company will likely be valued post-money at about ₹2,800 crore, according to entrackr estimation
Equity Restructuring
Post the last transaction, Motilal Oswal now holds a 7.14% stake in the company. The investment has diluted the founders slightly, with Verlinvest holding dipping from 21.17% pre-funding to 19.64%, and the founders’ holding declining from 76.21% to 70.76%.
About Lahori
Lahori, which was founded in 2017, has become one of India’s fastest-growing independent beverage companies. The brand is famous for its variety of classic Indian beverages like Lahori Zeera, Lahori Nimboo, and Lahori Shikanji, and takes the consumer back to the nostalgia of home-grown Indian flavors.
Financial Performance
Lahori hasn’t filed its financials for FY25 so far, but it reported a 47% increase in revenue from operations to ₹312 crore in FY24. Its net profit also tripled to ₹22.5 crore. Founder and CEO Saurabh Munjal is aiming for a revenue guidance of ₹500 crore by FY25.
Expansion Plans
With two production facilities in Punjab and Gujarat, Lahori is adding up a third at Uttar Pradesh. This new plant will also increase the company’s daily production capacity from 5 million to more than 8 million bottles. The fresh funding will also be used to expand the brand’s offline retail footprint, particularly in underserved markets.
Market Outlook
India’s Non-alcoholic ready-to-drink NARTD market was at ₹58,000–60,000 crore in 2022 and is growing at a fast pace. Its focus on being affordable and traditional sets Lahori apart in a crowded market viewed by international and local players alike.
Conclusion
Motilal Oswal’s investment underscores confidence in Lahori Kitchen’s vision and execution from the market standpoint. With plans to rapidly expand and a diverse consumer base, Lahori is on its way to reinforcing the country as a significant player in the beverage world.
