Beverage Startup Rio Innobev Raises Rs 10 Cr In Pre-Series A Round

Rio Innobev, a beverage startup has raised Rs 10 crore in a pre-Series A funding round led by early-stage VC firm Atomic Capital along with other investors.

This is the company’s first institutional investment and an important step in growing its retail presence and product range across India.

The startup will use the new funds to expand distribution, build its brand, create new products and upgrade its manufacturing.

It also plans to grow its range of beverages—covering indulgent, healthy and functional drinks—to meet changing consumer tastes.

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Rahul Sangoi, CEO and Co-Founder, Rio Innobev said, "When we started RIO, our clear mission was to create a beverage brand that reflects the energy, tastes, and aspirations of a new generation of Indian consumers. We saw a massive gap in the market for fun, flavour-forward, and affordable drinks that didn’t compromise on quality. From day one, we’ve stayed nimble, bold, and focused on building a brand that challenges the status quo. This fundraiser marks more than just capital, it is a validation of everything we have built and a springboard for where we are going. 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. Our goal is to make RIO a household name and this is just the beginning of that journey."

Apoorv Gautam, Founder, Atomic Capital said, "We were immediately drawn to Rio Innobev because they’ve built something rare, a brand that’s not only disruptive in its category but has also demonstrated strong fundamentals. They've proven they can scale without losing sight of what makes them special, a sharp product-market fit, a clear brand identity and an ambitious but disciplined execution style. This is not just a beverage company, it’s a movement that taps into the cultural and lifestyle pulse of young India. The team’s clarity of vision and ability to execute at scale set them apart. We believe Rio is on the verge of becoming a breakout consumer brand and we’re excited to support them in this journey."

About Rio Innobev

Founded in 2014 by Rahul Sangoi, Rajiv Sangoi and Rohan Sangoi, Pune-based Rio Innobev offers two main drinks: RIO Bubbly Fruit Drink and RIO BOOM Energy Drink.

The company says it has stayed EBITDA positive, growing from 7.5 lakh units in its first year to over 1.5 crore cans and bottles sold every year.

Currently, its products are available in over 35,000 retail stores across 25+ cities in Maharashtra and Gujarat.

Over the next three years, the company plans to expand to 1,00,000 outlets and strengthen its online and modern retail presence through quick commerce and large store chains.

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