Archian Foods, the parent company of Lahori Zeera, a Chandigarh-based company, has raised INR 200 crore (~USD 23 million) in Series B funding from Motilal Oswal Wealth. This valuation is INR 2,800 crore (~USD 329 million), three times the previous valuation of INR 900 crore in 2022.
This is one of the biggest fundraises in the fast-moving consumer goods (FMCG) space in India this year and shows not only Lahori Zeera’s growth in the traditional beverage segment but also the shift in investor interest towards homegrown consumer brands with regional flavours and mass market appeal.
Deal Structure and Valuation Math
According to filings, the company’s board approved the issue of 4,997 Series B preference shares at INR 4,00,252 per share with a face value of INR 100. This is the first institutional investment in Lahori Zeera after a gap of nearly three years.
Post allotment:
- Motilal Oswal Wealth will get 7.14% equity.
- Founders’ stake will be diluted from 76.21% to 70.76%.
- Verlinvest, which invested USD 15 million in 2022, will have 21.17% to 19.64% stake.
This is part of a larger INR 400–450 crore
The Founding Story and Brand Journey
Founded in 2017 by three cousins — Saurabh Munjal, Saurabh Bhutna, and Nikhil Doda — Lahori Zeera was born from a vision to revive India’s traditional drink culture with a modern, scalable, and branded approach.
Their flagship product, Lahori Zeera, a cumin-flavored carbonated drink, quickly gained traction in North India. The product line has since expanded to include:
- Lahori Nimboo
- Lahori Shikanji
- Imli Banta
- Kaccha Aam
- Gimboo
These beverages cater to evolving urban and semi-urban taste preferences, where nostalgia meets affordability. Lahori Zeera’s differentiation lies in its vernacular branding, indigenous flavors, and affordable SKUs, which strongly appeal to Tier II, III, and rural markets — a segment long underserved by global beverage giants.
Financial Performance: Rocketing Revenues and Profitability
Lahori’s funding round is strongly backed by solid financial performance:
FY24 Results
- Revenue from operations: INR 312 crore, up 47% YoY (FY23: INR 212 crore)
- Net profit: INR 22.5 crore, a 3X jump from INR 7.6 crore in FY23
- EBITDA margins: Not disclosed, but estimated by analysts to be in double digits, which is rare for a beverage startup in a scaling phase
FY25 Forecast
- Projected revenue: INR 500 crore
- Profitability outlook: Expected to improve further, driven by volume growth and operational leverage
The company is yet to officially file FY25 results, but internal sources suggest that Lahori has either met or is on track to surpass the INR 500 crore revenue milestone.
Use of Proceeds
The fresh capital from Motilal Oswal will be strategically deployed to:
- Expand production capacity from 5 million to 8 million bottles per day
- Establish a third plant in Uttar Pradesh, complementing its existing units in Punjab and Gujarat
- Deepen distribution in Eastern and Western India, which are key new markets
- Enhance digital and quick commerce presence, where the company has recently started experimenting
Despite over 95% of its revenue coming from offline channels, Lahori has begun piloting presence on quick commerce platforms such as Zepto and Blinkit, signaling a potential omnichannel shift.
Market Landscape
The Indian non-alcoholic beverage market, currently valued at INR 67,000 crore, is projected to reach INR 1.5 lakh crore by 2030, according to the Indian Beverage Association. Within this, carbonated traditional beverages have carved a niche of their own, attracting both startups and conglomerates.
Lahori is emerging as a strong contender in a space where:
- PepsiCo and Coca-Cola dominate but are now experimenting with smaller INR 10 packs
- Reliance Retail’s Campa Cola re-entry is shaking up pricing strategies
- Regional players and functional beverages startups are gaining ground
Lahori’s advantage lies in its:
- Deep cultural resonance
- Efficient cost structure
- Ability to price competitively without compromising on margin
Motilal Oswal’s Strategy
This investment adds to Motilal Oswal Private Equity’s aggressive push into consumer and tech-led growth stories. Over the past year, the group has:
- Led a USD 350M (~INR 3,000 crore) round in Zepto
- Backed HealthKart with USD 153M (~INR 1,310 crore)
- Participated in Zomato’s USD 1B (~INR 8567 crore) QIP
- Invested USD 12M (~INR 102 crore) in seafood platform Captain Fresh
- Extended INR 50 crore debt to Auxilo, an edtech-focused NBFC
Lahori fits their thesis perfectly: strong revenue visibility, consumer brand loyalty, margin expansion potential, and a scalable offline infrastructure.
Outlook
Industry insiders suggest that Lahori Zeera is being groomed for a potential IPO within the next 24–36 months. With strong fundamentals, an expanding footprint, and strategic capital backing, the company could aim for listing at a INR 6,000–7,000 crore valuation, assuming continued revenue and margin expansion.
Additionally, the next leg of fundraising may include strategic investors from the FMCG or food-tech domain, looking to establish synergy with Lahori’s robust offline network.
Conclusion
From a humble regional startup to a INR 2,800 crore FMCG powerhouse, Lahori’s journey is a case study in brand building, operational execution, and deep market understanding.
With fresh capital in the bank, a loyal customer base, and growing investor confidence, Lahori is poised to redefine India’s beverage story — one traditional flavor at a time. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.