The funding round, which was a mix of equity and debt, saw participation from the likes of Chimes Group, The Chennai Angels, India Accelerator, Hyderabad Angels, and Mumbai Angels
Proost Beer, which currently has a presence in Delhi, Punjab, Uttar Pradesh, and Kerala, said it would use the fresh funds to expand its production capacity and enter into new markets
The startup, which operates under the umbrella of Grano69 Beverages, manufactures and sells a range of beers and aims to capture 5% share in the Indian market by the end of the decade
Homegrown beer brand Proost Beer has raised INR 25 Cr (about $3 Mn) in its pre-Series A funding round, which was a mix of equity and debt.
The funding round saw participation from existing and new investors, including Chimes Group, Dev Punj, The Chennai Angels, Finvolve, India Accelerator, Hyderabad Angels, Mumbai Angels, AngelList India, and Agiliti Venture.
In a statement, the startup said that the fresh capital would be used for its strategic expansion plans. It aims to expand its production capacity and enter into new markets.
Prost Beer, founded in 2017, operates under the umbrella of Delhi NCR-based Grano69 Beverages and claims to have a robust presence in retail outlets across Delhi, Punjab, Uttar Pradesh, and Kerala.
Proost Beer manufactures and sells a range of beers. It claims that its beers are entirely made in India. The startup said it aims to secure a 5% share in the Indian beer market by the end of the decade.
Commenting on the fundraise, Vijay P Sharma, cofounder & managing director of Proost Beer, said, “We are highly optimistic about the industry’s growth potential, driven by the increasing consumer appetite for innovative, high-quality products. With this funding, we anticipate achieving a remarkable 300% growth.”
Besides established players like Diageo, United Breweries, and Pernod Ricard India, Proost Beer also competes with startups like Bira91 and White Owl Brewery.
Bira 91 claims to be the fourth-largest beer company in India. Earlier this year, it raised $10 Mn from Japan’s largest bank, MUFG Bank, three months after it raised $70 Mn in its Series D funding round from Japanese beer company Kirin Holdings.
The developments come at a time when the Indian beer market is growing rapidly on the back of increasing middle class, rising disposable income, and evolving consumer preferences. The size of the Indian beer market was estimated to be INR 38,360 Cr in 2022. As per IMARC Group, the market is expected to reach a size of INR 62,240 Cr by 2028, exhibiting a growth rate (CAGR) of 8.1% during 2023-2028.