Rio Innobev, a fast-growing beverage startup based in Pune, has successfully raised ₹10 crore in a pre-Series A funding round. The round was led by venture capital firm Atomic Capital, with participation from several other prominent investors. This marks the company’s first institutional funding and will be instrumental in supporting its ambitious growth plans.
Fueling Expansion and Innovation
With this funding, Rio Innobev plans to accelerate its nationwide expansion and invest in four key areas: distribution, brand building, product innovation, and manufacturing enhancements.
Currently, the company operates across more than 37,000 retail outlets in over 25 cities across Maharashtra, Gujarat, and parts of Punjab. Its goal is to scale this presence to 1,00,000 points in the next three years. Growth will be led by a strengthened presence in fast commerce platforms and emerging trade networks.
The CEO and co-founder of the company, Rahul Sangoi, has said:
“This fundraise marks more than just capital. With this backing, we are doubling down on what we do best—expanding our footprint aggressively, innovating with speed, and delivering products that excite and energize.”
Product Portfolio and Market Performance
Founded in 2014, Rio Innobev is known for its youth-centric, refreshing beverages, including:
- RIO Bubbly Fruit Drink – A fizzy fruit juice enriched with vitamin C and honey, offered in bold flavors such as Acai Berry, Green Mango, Wild Berry, Guava, Peach Berry, and Passion Fruit.
- RIO BOOM Energy Drink – A vibrant, vitamin-enriched energy drink designed for Gen-Z and millennial consumers.
Over the years, the company has scaled from selling 7.5 lakh units in its first year to over 15 million cans and bottles annually. Rio Innobev also proudly maintains an EBITDA-positive status, a rare achievement among early-stage consumer startups.
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A Vision for the Future
With this funding round, Rio Innobev is positioning itself to become a ₹500 crore brand within the next four years. The company aims to capitalize on growing demand for beverages in the indulgence, health, and functional categories—segments that reflect evolving consumer preferences across India.
Apart from expanding the new outlets, Rio Innobev is also expanding its manufacturing unit based out of Pune to address the anticipated increase in demand as the firm expands at the national level.
As India’s drinks industry continues to expand and diversify, Rio Innobev’s innovative flavors, smart branding, and plan to grow could make it one of the sector’s top performers.
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