GRM Overseas acquires stake in Rage Coffee to move into new brands
GRM Overseas, India’s third-largest rice exporter, on Wednesday announced that it has acquired a 44 percent stake in the parent company of instant coffee maker Rage Coffee. The move is part of the company’s investment strategy to invest in a range of modern consumer brands.
GRM, which mainly trades in rice, flour and edible oils, said it acquired the stake in Swmabhan Commerce through primary infusion and secondary acquisitions, but did not disclose financial details citing confidentiality reasons.
The company will become the largest shareholder in the parent company of three-year-old Rage Coffee, which counts Sixth Sense Ventures and prominent figures such as cricketer Virat Kohli among its investors. The press release did not say who sold their stakes.
According to GRM, the stake purchase is the first major deal under the new investment platform set up to invest 2 billion rupees (nearly $24 million) in new, direct-to-consumer brands.
GRM said these investments are aimed at driving 20 percent of revenue from modern businesses like Rage Coffee.
Rage Coffee plans to open coffeehouses, entering the traditional market dominated by international brands such as Tata Starbucks and Barista, as well as private equity-backed startups such as Third Wave and Blue Tokai.
GRM expects to complete the purchase within a year.
The stock price rose as much as 4.3 percent on the news, before eventually settling up 1.7 percent.
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First publication: Aug 28, 2024 | 5:41 PM IST