GRM Overseas Acquires 44% Stake In Virat Kohli-Backed Startup Rage Coffee

GRM Overseas Ltd., a leading exporter of premium basmati rice, has acquired a 44% stake in Swmabhan Commerce Pvt., the parent company of the digital-first brand Rage Coffee, through a combination of primary infusion and secondary buyouts. The move marks a major step forward in the listed company's expansion into the fast-growing Indian coffee market.

"This strategic investment aligns perfectly with our vision to drive growth in digital-first, health-focused, and lifestyle brands," said Atul Garg, managing director of GRM Overseas, in an exchange filing on Wednesday. "We see enormous potential in expanding Rage Coffee's presence in the domestic market and leveraging synergies with our established export markets."

The deal aligns with GRM Overseas' broader strategy under its newly launched platform, 10X Ventures, which aims to invest Rs 200 crore in digital-first, new-age D2C brands. Rage Coffee is the first significant investment under this platform, signalling GRM's intent to diversify and strengthen its portfolio in the packaged food space, according to Garg.

GRM also plans to open coffee shops under the Rage Coffee brand in India.

Founded in 2018, Rage Coffee is co-owned by Bharat Sethi, Sixth Sense Ventures, and prominent figures such as cricketer Virat Kohli and actor Rannvijay Singha. The D2C coffee startup had a turnover of Rs 24.9 crore as of March 2024, up from Rs 23.9 crore in FY23 and Rs 19.5 crore in FY22.

The acquisition is being completed at a mutually agreed pre-money enterprise valuation, the company said without disclosing valuation details.

Rage Coffee caters to 1,000 hotel, restaurant, and catering outlets, and more than 5,000 general trade and modern retail touchpoints. The instant-flavoured coffee brand has a manufacturing facility in Manesar, Haryana.

"With GRM, we have found a partner that not only understands our mission but also complements our strengths with their extensive distribution network, corporate capabilities, and deep industry expertise," said Bharat Sethi, founder and CEO, Rage Coffee.

GRM Overseas aims to derive 20% of its future revenue from new-age companies like Rage Coffee while maintaining its leadership in the rice, atta, and edible oil sectors. It reported Rs 1,345 crore in revenue and Rs 105 crore in net profit for FY24. GRM Overseas also recently appointed Bollywood actor Salman Khan as its brand ambassador for the company's 10X brand range of basmati rice and the 10X Shakti range of wheat flour.