Radiohead Brands, the parent company of Jimmy’s Cocktails, a direct-to-consumer (D2C) food and beverages (F&B) startup, recently announced that it has raised an additional funding of $1.3 million (INR 11 crore). This funding injection is a significant milestone for the company as it marks the continuation of its pre-Series A round.
The latest fundraising initiative was spearheaded by Parth Ventures, attracting a diverse range of participants. Angel investors such as Paytm’s Vijay Shekhar Sharma, Neel Bahl, along with existing investors like Keki Mistry, Vishesh Khurana, 7Square Ventures, Vidur Talwar, and Anirudh Somani enthusiastically joined the round.
The direct-to-consumer (D2C) startup, known for its offerings in the cocktail and sparkling mixers segment, has secured new funding that will be utilized to broaden its product portfolio and establish a robust presence in the energy drinks market.
The startup made a significant announcement, revealing its entry into the energy drinks market with the highly anticipated launch of Hustle.
Ankur Bhatia, Co-Founder and CEO of Radiohead Brands said, “Packaged beverages, as a category, is stuck at (the) lower end of the price segment which is unique to the Indian subcontinent. We are disrupting this and building a multi beverage brands company at the premium end with better quality products built on the back of sharp positioning and clutter breaking packaging.”
Commenting on the fundraise, Prath ventures Founder Piyush Goenka said, “Radiohead Brands is our play on the high-growth premium beverages segment in India. Ankur and Nitin are the best team to build in this market with a strong understanding of brand building and distribution.”
Established in 2019 by Bhatia and Nitin Bhardwaj, the startup recently secured $1.8 million in its pre-Series A funding round, which took place in April 2022 and was spearheaded by Roots Ventures.
According to the company, Radiohead Brands has experienced a threefold increase in valuation over the past year, and an impressive twentyfold surge since its establishment in 2019.
With a significant injection of funds, the direct-to-consumer (D2C) brand is poised to venture into multiple fresh domains over the upcoming years. Radiohead Brands has set its sights on achieving an annual run rate (ARR) of INR 100 crore by 2024.
According to the company’s statement, it reported a remarkable 75% year-on-year (YoY) revenue growth in the fiscal year 2022-23 (FY23). The company’s renowned brand, Jimmy Cocktails, has expanded its presence to over 20,000 outlets across 50 cities. Additionally, the company offers its products through various channels, including ecommerce marketplaces and its dedicated website.
Jimmy’s Cocktails is a formidable contender in the highly competitive beverage industry, going head-to-head with industry giants like PepsiCo, Coca-Cola, Hector Beverages, and Red Bull. This thriving company thrives within the expansive non-alcoholic drinks market, which has experienced an astronomical surge in sales in recent years. This remarkable growth can be attributed to the combination of greater discretionary spending and the remarkable ascent of direct-to-consumer (D2C) brands.
According to a report, the domestic market for non-alcoholic beverages is expected to reach a market size of INR 60,180 Crores by the fiscal year 2027.