Pune-based beverage company Rio Innobev has raised Rs 10 crore in its first institutional round of funding. This pre-Series A round was led by Atomic Capital, along with participation from a group of undisclosed investors. The funds will support Rio Innobev’s plans for aggressive nationwide expansion and continued product innovation.
Rio Plans to Expand Presence Across India
At present, Rio Innobev’s products are available in over 35,000 retail outlets across Maharashtra and Gujarat. With the help of this new funding, the startup now aims to grow that number to 1,00,000 outlets over the next three years. The company is also focused on increasing its reach across modern trade platforms and quick commerce apps to strengthen its omnichannel distribution model.
Rio Innobev was co-founded in 2014 by Rahul Sangoi. It offers two major products — RIO Bubbly Fruit Drink (BFD) and RIO BOOM Energy Drink — both aimed at Gen Z and millennials. RIO BFD is known for its 15% real fruit juice content, vitamin C, honey, and 25% less sugar compared to other soft drinks. Meanwhile, RIO BOOM provides bold flavors and an energy boost at a budget-friendly price.
Rio Innobev: A New-Age Indian Beverage Brand
Rahul Sangoi said that Rio was created to reflect the lifestyle and taste of the younger generation in India. He added that this funding is not just financial support but also recognition of their work and future goals. According to Sangoi, Rio Innobev plans to double down on what they do best — innovating products, expanding reach, and becoming a known name in Indian households.
The company said it has been EBITDA-positive from the beginning. Starting with 7.5 lakh units sold in its first year, Rio Innobev now sells over 15 million cans and bottles each year. These beverages are produced in their Pune-based manufacturing unit.
Funding Use for Expansion and Innovation
The startup plans to invest the new capital in expanding its distribution network, building its brand, upgrading manufacturing, and creating new products. Rio wants to explore beverage segments focused on indulgence, health, and functional benefits to meet changing customer preferences.
Apoorv Gautam, the founder of Atomic Capital, believes that Rio has the ability to become a category-defining brand. He said that the startup connects well with young India through its energy, execution, and vision. Gautam also said that Rio is more than just a drink company — it represents a cultural movement.
Targeting Rs 500 Crore in Revenue
Rio Innobev’s beverages are available at modern retail stores like Dmart, Reliance Retail, 7-Eleven, and Wellness Forever. They are also delivered via quick commerce platforms such as Zepto, Swiggy Instamart, and Blinkit. The startup plans to increase its retail footprint, especially in metro and mini-metro cities. With this strong strategy and funding, the company aims to become a Rs 500 crore brand within the next four years.
