Rage Coffee, a direct-to-consumer brand that manufactures and markets coffee products, on Thursday said it has raised growth capital from revenue-based financing platform GetVantage.
The fresh capital will help the New Delhi-based startup to expand its distribution network and achieve a five-fold increase in sales, said Rage Coffee in a statement. It did not disclose financial details of the transaction.
In January last year, Rage Coffee had raised funding from a clutch of investors led by early-stage technology startup investor Refex. Capital.
Rage Coffee, which is operated by Swmabhan Commerce Pvt Ltd, was founded in 2018 by Bharat Sethi, who had previously launched business-to-business (B2B) ecommerce marketplace iDecorama and online platform for artists and designers PosterGully.
Sethi said that the idea for Rage Coffee was conceived when he was working on a problem to solve the distribution of new-age consumer packaged goods brands in India and found out that the coffee market had a huge potential and many unserved gaps.
That is when he decided to focus on ingredients, formulations, manufacturing techniques, packaging and direct-to-consumer distribution to make a premium quality affordable coffee product, he added. Rage Coffee's first product is a proprietary small batch crystallised instant coffee.
The Mumbai-headquartered company is a revenue-based financing platform that provides growth capital to digital brands without founders having to dilute equity.
GetVantage says it offers loans in the range of Rs 20 lakh to Rs 2 crore at no interest and no hidden fees while charging one flat fee that is recovered as small, flexible shares of future revenues.
In October last year, GetVantage had raised $5 million in a seed round which was a mix of equity and debt funding from venture capital firm Chiratae Ventures and Japan-based Dream Incubator.