Indian rice exporter GRM Overseas buys stake in Rage Coffee in push into new-age brands

GRM Overseas

28/08/2024 11:49

BENGALURU, Aug 28 (Reuters) - GRM Overseas  GRMO.NS ,
India's third-largest rice exporter, said on Wednesday that it
bought a 44% stake in the parent of instant coffee maker Rage
Coffee, as a part its move to invest in various new-age consumer
brands.
    GRM, which mainly deals with rice, flour and edible oils,
said it bought the stake in Swmabhan Commerce through primary
infusion and secondary buyouts, but did not disclose financial
details, citing confidentiality reasons.
    The company becomes the largest shareholder in
three-year-old Rage Coffee's parent, whose investors include
Sixth Sense Ventures, and prominent figures such as cricketer
Virat Kohli. The release did not say who sold their stakes.
    The stake purchase, said GRM, is its first major deal under
its new investment platform set up to spend 2 billion rupees
(nearly $24 million) in new-age direct-to-consumer brands.
    GRM said these investments are aimed at deriving 20% of its
revenue from new-age companies such as Rage Coffee.
    For its part, Rage Coffee plans to open coffee shops,
entering the brick-and-mortar space dominated by international
brands such as Tata Starbucks  SBUX.O  and Barista as well as
private equity-backed startups like Third Wave and Blue Tokai.
    GRM said it expects to complete the purchase in one year.
    Its stock price jumped as much as 4.3% on the news before
settling 1.7% higher.

 (Reporting by Varun Hebbalalu in Bengaluru; Editing by Savio
D'Souza)
 ((varunvyas.hebbalalu@thomsonreuters.com;))