Vahdam Teas Raises USD $2.5M in Series B Funding

Vahdam Teas has successfully raised USD $2.5 million in its Series B round of funding for its direct-to-consumer business. India’s leading consumer investment fund, Fireside Ventures, is taking the lead role for this round taking the total funding raised by the brand to USD $5 million in the last two years. This round will be used for further developing the US market by investing in customer acquisition and brand building, along with uncovering new territories.

Its 27-year-old founder and fourth-generation tea entrepreneur, Bala Sarda, established the company in 2015 with a vision to build a global premium tea brand from India. Sarda saw an opportunity with his native India, being the second largest producer of tea in the world, to take back its ownership of its teas, empower Indian farmers and provide the most premium and freshest teas on the US market.

Vahdam Teas is a vertically integrated tea brand that is disrupting the supply chain of tea by making premium garden-fresh tea available to consumers across the world in the shortest periods of time by leveraging technology, cutting out all unnecessary middlemen and launching innovative packaging formats. All the teas are procured directly from plantations and tea growers, which they give back to within days of production, packaged garden fresh and shipped directly from its Indian-based source.

The brand generates all its sales online and has now shipped over 100 million cups of premium teas to consumers in over 85 countries. The brand has grown by 1,000% in the last two years. With its recent opening of its first US warehouse in Indiana and an office in New York, 70% of its revenue comes from the US market.

This month, the company is unveiling its first collection of Single Serve Pyramid Tea Bags that will add to its exclusive offering of over 75 tea blends in loose leaf teas. Its Turmeric Spice Herbal Tea, part of its new tea bag offering, was awarded the SOFI 2018 for the “Best New Product” in the Hot Beverages Category by the Specialty Food Association, selected from over 2,600 products.

“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,” says Sarda. “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.”

Commenting on the investment, Kanwaljit Singh, managing partner, Fireside Ventures, said, “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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