Beverage business Rio Innobev has raised its first institutional fundraise of Rs. 10 crore in a pre-Series A funding round led by Atomic Capital along with participation from additional investors.
The extra funds will be utilized for distribution development, brand building, product innovation, and manufacturing enhancements, Rio Innobev said in a press release.
Rio Innobev was co-founded in 2014 by Rahul, Rajiv, and Rohan Sangoi. Their products include RIO Bubbly Fruit Drink (BFD), which caters to young, aspirational consumers with a bold taste and energy-boosting formula, and RIO BOOM Energy Drink, which offers exotic fruit flavors with 15% juice content, fortified with honey and Vitamin C, and 25% less sugar.
According to the Pune-based firm, it already operates more than 35,000 retail locations in more than 25 cities in Gujarat and Maharashtra. Over the next three years, it hopes to expand to 1,00,000 locations while strengthening its omnichannel presence through the use of contemporary trade networks and Quick Commerce platforms.
From 7.5 lakh units sold in its initial year to over 15 million cans and bottles sold annually, Rio Innobev asserts that it has maintained a positive EBITDA since its founding. Innovation, quickness to market, and unwavering quality are the brand's main goals. In order to satisfy changing consumer tastes, the corporation wants to diversify its product line into the pleasure, health, and functional beverage sectors.
Rio Innobev is present on rapid commerce sites including Zepto, Swiggy Instamart, and Blinkit, as well as in stores like Dmart, Reliance Retail, 7-Eleven, Wellness Forever, and Patel Retail.
Rahul Sangoi, Co-Founder, Rio Innobev says, "When we started RIO, our mission was to create a beverage brand that reflects the energy, tastes, and aspirations of a new generation of Indian consumers”.
"This fundraise marks more than just capital, it is a validation of everything we have built and a springboard for where we are going. With this backing, we are doubling down on what we do best, expanding our footprint aggressively, innovating with speed, and delivering products that excite and energize. Our goal is to make RIO a household name, and this is just the beginning of that journey," Sangoi added.
Apoorv Gautam, Founder of Atomic Capital states, "This is not just a beverage company; it's a movement that taps into the cultural and lifestyle pulse of young India. The team's clarity of vision and ability to execute at scale set them apart. We believe Rio is on the verge of becoming a breakout consumer brand, and we're excited to support them in this journey”.
