GRM Overseas has acquired a 44% stake in Rage Coffee, expanding its portfolio and strengthening its presence in the FMCG sector.

 

On Wednesday, FMCG firm GRM Overseas announced the acquisition of a 44% stake in Rage Coffee. This significant strategic investment is in Swmabhan Commerce Pvt Ltd, the parent company of the digital-first coffee brand, Rage Coffee. GRM Overseas secured the stake through a combination of primary infusion and secondary buyouts, marking a major step in its expansion into the fast-growing Indian coffee market.

Rage Coffee, co-owned by Bharat Sethi, Sixth Sense Ventures, cricketer Virat Kohli, and actor Rannvijay Singha, has quickly become a favorite among new-age consumers. The brand offers a diverse range of coffee products, including instant coffee in freeze-dried, spray-dried, and agglomerated forms, as well as whole beans, ground coffee, and ready-to-drink beverages.

Rage Coffee's omnichannel distribution network spans D2C platforms, leading e-commerce and quick commerce marketplaces, over 1,000 HoReCa outlets, and more than 5,000 general trade and modern retail touchpoints across India.

Bharat Sethi, Founder & CEO of Rage Coffee, said, "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."

Atul Garg, Managing Director of GRM Overseas Limited, stated, "This strategic investment in Rage Coffee aligns perfectly with our vision to drive growth in digital-first, health-focused, and lifestyle brands. We see enormous potential in expanding Rage Coffee’s presence in the domestic market and leveraging synergies with our established export markets. Coffee, as a product category, fits well with our international growth strategy, and we are excited to combine our industry expertise and distribution capabilities with Rage Coffee’s offerings."

He further added, "The acquisition is part of GRM Overseas' broader strategy under its newly launched platform, 10X Ventures, which aims to invest ₹200 crore in digital-first, new-age D2C brands. Rage Coffee is the first significant investment under this platform, signaling GRM's intent to diversify and strengthen its portfolio in the FMCG space."

The company plans to leverage its vast distribution network to expand Rage Coffee’s presence both domestically and internationally. This includes potentially supplying coffee beans and soluble powder to existing clients in international markets and opening coffee shops under the Rage Coffee brand.

With this acquisition, GRM Overseas strengthens its position in India's packaged food market, catering to the evolving preferences of new-age consumers. The company, which reported ₹1,345 crore in revenue and ₹105 crore in profits for FY24, 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.

Disclaimer: Before making any investment decisions based on the preceding material, consumers are strongly advised to consult with recognized specialists.