Pune-based Rio Innobev has just landed its first big institutional cheque—Rs 10 crore in pre-Series A funding—led by Atomic Capital, along with a clutch of high-profile investors who’ve chosen to stay behind the curtain (for now). For a homegrown challenger brand that’s been grinding it out since 2014, this raise isn’t just about money—it’s about momentum.
What started as a scrappy beverage startup co-founded by Rahul Sangoi is now looking to muscle its way into the big leagues. With over 15 million units sold annually and shelf space in 35,000+ outlets across Maharashtra and Gujarat, Rio Innobev is going full throttle: the aim is to triple its reach to 100,000 stores within the next three years.
But distribution is just one piece of the puzzle. The company is also placing serious bets on quick commerce platforms, supermarket chains, and other modern trade channels—basically anywhere thirsty Gen Z and millennial customers might be browsing.
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Inside the Fridge: What Rio’s Pouring
Rio’s two flagship products—RIO Bubbly Fruit Drink (BFD) and RIO BOOM Energy Drink—are bold, bright, and unashamedly targeted at India’s younger consumers. BFD comes loaded with real fruit juice (15%), vitamin C, honey, and clocks in with 25% less sugar than most of its rivals. RIO BOOM, on the other hand, is built for the high-octane crowd—offering an energy boost in a wallet-friendly format, minus the international price tag.
“We didn’t just want to launch another drink,” says co-founder Rahul Sangoi. “We wanted to create something that actually resonates with India’s young, bold, and aspirational consumers. This fundraise validates the journey we’ve been on—and gives us the fuel to push faster, further, and harder.”
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Rio claims to have stayed EBITDA positive from day one—a rare feat in India’s ultra-competitive FMCG sector. From humble beginnings selling 7.5 lakh units in its first year, it now operates a full-fledged production plant in Pune, churning out tens of millions of cans and bottles annually.
