Vahdam Teas secures ₹25 crore for expansion
High-end Indian tea brand Vahdam Teas has raised ₹25 crore (around $3 million) in funding from Sidbi Venture Capital Ltd, a subsidiary of SIDBI. The money will be utilized to speed up the company’s international expansion, especially in major markets such as the U.S., UK, Canada, and Europe, and to strengthen its supply chain and product innovation.
Established by Bala Sarda, Vahdam Teas has a farm-to-cup concept, where the company purchases teas, spices, and superfoods directly from more than 150 Indian farms and ships to over 130 countries. Its offerings are available online and in large retail outlets such as Walmart and Costco, where it has a shelf presence in more than 2,000 Walmart outlets across the U.S.
The company reported 10% revenue growth for FY24, which stood at ₹225.2 crore, and considerably decreased its losses to ₹17.6 crore from ₹55 crore in FY23. The narrowing of losses came due to cost-cutting in inventory and efficiency in operations.
Though the firm has one café in New Delhi, there is no plan at hand to go big on expanding the café chain. However, efforts are underway to expand the digital and retail presence globally.
As per Arup Kumar, MD of Sidbi Venture, the funding will help Vahdam achieve its vision to scale and build a robust global supply chain. Vahdam had earlier raised ₹174 crore in a Series D round led by IIFL AMC in 2021.
The latest funding makes Vahdam a major player in the expanding $80.9 billion global tea market, which is projected to grow to $135 billion by 2032.
