D2C brands are on a rise in the Indian startup ecosystem. Marquee as well as institutional investors are also showing full trust in direct-to-consumer firms. In a recent financial event, Rage Coffee has raised $5 million to strengthen its operations further.
Rage Coffee Raises $5 Million
Rage Coffee has announced on Tuesday that it has closed a Series A funding round of $5 million led by Sixth Sense Ventures.
Through the new funding, Rage Coffee is planning to expand its online and offline presence in India. Launching new products, new marketing ideas, distribution enhancement, producing more quantity, and strengthening the existing team with experienced staff are other major areas where the startup wants to invest the current funding.
Rage was founded in 2018 by Bharat Sethi. The startup manufactures, markets, and distributes coffee products to its customers. The coffee startup also sells instant mix craft coffee in biodegradable tube shots.
Sixth Sense Ventures, an investment firm of current funding round, believes that Rage is well-positioned in the growing cafe culture. Talking about it in detail, Nikhil Vora, CEO, and founder of Sixth Sense Ventures said, “With the increasing adoption of the café culture and changing consumer preferences within hot beverages (in favor of coffee), we sense that the segment will witness a strong increase in penetration. We believe Rage Coffee is extremely well-positioned to resonate with these new-age consumers and create a strong brand affinity for its products.”
Growth of Rage Coffee
Currently, Rage Coffee is selling its products via its website and offline stores. Generally, digital brands avoid the offline space in the initial phase but Rage has to strengthen its offline presence equally by a network of 1000 distributors.
Sethi is excited to welcome Sixth Sense as the investment partner. Talking about the investment firm and Rage’s growth in recent years, Sethi said, “We are excited to work with Sixth Sense Ventures – veteran FMCG investors, through this round of funding. Therefore, we plan to double down on our efforts across all the channels. We are successfully building a truly omnichannel FMCG brand, with distribution strategies being implemented for the first time, given our digital DNA. Our direct-to-consumer channel has grown 10x during the pandemic.”
The startup is also to start its operations in the US, Europe, and Gulf Cooperation Council (GCC) to launch its products globally.
This is the second investment in coffee startups after specialty coffee startup Blue Tokai Coffee Roasters fundraising of ₹17 crores on August 11, 2021, from Anicut Angel Fund, as a part of its pre-Series B bridge round. Blue Tokai is also looking to start its operations in the international market by utilizing the current funds.
Also Read: Growth of D2C Brands in India
