Premium tea brand Vahdam Teas has raised $2.5 million in a Series B funding round led by Indian investment fund Fireside Ventures.
Vahdam Teas markets a range of 75 loose leaf teas sourced directly from Indian tea plantations and distributes products directly to consumers. The brand is also releasing a range of single-serve pyramid tea bags in mid-October.
The company says it will use the funding to increase its presence in the US market by investing in customer acquisition and brand building, as well as seeking new distribution territories.
Teas used by the brand are procured directly from plantations and tea growers within days of production, before being packaged when garden fresh and then shipped directly from its Indian-based source, and Vahdam claims that it is the “world’s first truly vertically integrated tea brand”.
Vahdam claims it has sold 100 million cups of premium teas to consumers, and that it has grown 1,000% in the last two years, with 70% of its total revenue coming from the US market.
Vahdam Teas Founder Bala Sarda said: “We are excited to take the next steps in the growth journey at Vahdam Teas.
“Fireside Ventures has been one our earliest supporters and we are glad to have them back with us in this round as well. We have seen tremendous customer appreciation for our teas and plan to keep building the momentum.
“With stronger investment in the brand and our infrastructure, we plan to keep building to achieve our vision of making the freshest teas to consumers worldwide, under a home-grown brand, which is socially conscious.”
Kanwaljit Singh, managing partner Fireside Ventures added: “Vahdam Teas is an innovative brand that brings the best of Indian teas to mainstream global consumers.
“Fireside invested in the business in the previous round of investment as well and seeing the strong performance of the business, we are delighted to reinvest in the company.
“We will continue to back Bala’s leadership and passion to build a world class global Indian brand.”
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