The latest funding follows a global trend where celebrities are increasingly investing in brands instead of endorsing them. For instance, singer Madonna funded coconut water brand Vita Coco, rapper 50 Cent had minority stake in Glaceau vitamin water, while Beyonce invested lat year in watermelon-water startup WTRMLN WTR.
“While professional investors take calculated risks, celebrities are believers and users of the brand. Jacqueline has about 13 million followers just on instagram and can influence buyers. Hence, she is not an ambassador but an evangelist who can have an impact on the topline,” said Anuj Rakyan, who founded the company three years ago.
Jacqueline’s investment of Rs 3.5 crore pegs the company’s worth at about Rs 120 crore, similar to the valuation Rakyan got during last year’s investments, when the startup raised close to $4.5 million in series B funding from Sequoia Capital, Saama Capital Management and DSG Consumer Partners.
Rakyan said the company plans to raise $10 million by December this year as it looks to spruce up manufacturing and marketing. The company runs in-house logistics and manufacturing units that help control costs and quality: Unlike packed juices that have shelf lives of up to six months, Rakyan products have limited shelf life and need chillers in their supply chain.
Globally, shifting consumer tastes are prompting global beverages giants to find ways to diversify away from traditional soda and high-calorie juices. Two years ago, Coca-Cola Co acquired a minority stake in Suja Life, an organic, cold-pressed juices brand, while PepsiCo bought Naked Juice Co more than a decade ago.
In India, too, the demand for healthier drinks is increasing faster in urban centres, with consumers switching to fruit-based beverages. Over the past year, the company that makes soup, nut milk, coconut water, and smoothies, has taken its retail network to 1,100 sales points from 130 earlier.
Last month, it clocked sales of 8 lakh units. But as consumer health awareness increases, Rakyan wants to shed its premium price tag, and launch products starting atRs 50, compared with Rs 80 now.
Source: The Economic Times