After more than five years in the ready-to-drink cocktail business, Bengaluru-based startup O’Be Cocktails has officially shut its doors. Launched in July 2019 by Nitesh Prakash, the brand set out to redefine the Indian alcohol market with premium, pre-mixed cocktails crafted through over a hundred iterations.
Despite an extensive distribution network—including 22 private distributors and two government contracts—the startup struggled to sustain itself. Prakash took to LinkedIn to announce the closure, calling it one of the hardest decisions he has ever had to make. He explained that O’Be had a clear vision for delivering a high-quality cocktail experience, but the Indian alcohol market, heavily driven by price and mass consumption, did not align with this approach.
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No Buyers, No Way Forward
For the past year, the company actively sought a buyer, but no deal materialized. Prakash and his team explored every possible avenue to keep the brand alive, yet in the end, shutting down was the only viable path.
“Our customers, investors, and team have been the backbone of this journey,” he wrote. “Your unwavering support has been invaluable, and for that, we are deeply grateful.”
The Rise and Fall of O’Be Cocktails
The brand initially gained traction, securing ₹3.5 crore in an angel round in August 2021. Key investors included First Cheque, LetsVenture, Ola’s Bhavish Aggarwal, Tracxn’s Abhishek Goyal, and Sprout Investments.
In November 2023, O’Be raised a pre-Series A round led by Inflection Point Ventures, which helped fuel its expansion. At its peak, the brand had a presence in nine Indian states and even made its way into Bhutan.
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However, even with funding and a growing footprint, the business couldn’t escape the challenges of a market where alcohol is largely treated as a commodity rather than an experience. Eventually, the financial strain proved too much to overcome.
With O’Be’s exit, Prakash leaves behind a brand that attempted to shake up India’s cocktail scene—but ultimately, the industry wasn’t quite ready for it.
