Siliguri and Bengalure based online premium tea selling startup Teabox raised $7 million in a series B fresh round of funding from a clutch of investors including Accel Partners and Ratan Tata.
The startup will use the funding to expand its geographic reach, and further penetrate in US.
“Online and offline expansion will be a major area of focus for us. The US continues to be our biggest market, generating about 40% of our overall revenues, but we’ve also seen demand from India pick up considerably over the past year or so,” said Dugar.
Teabox had earlier raised funding of $6 million in 2015 and the current round may further increase to $10 million as the talks still continue with the investors, a financial daily reported. Teabox currently ships tea to over 100 countries from its warehouse in Siliguri. The startup is also the only tea selling startup that has received such enormous amount of funding.
“We are perhaps the only global tea brand to have an extremely strong digital presence that has fuelled our growth so far. And that only helps us further our growth when we go multi-channel to create a 360-degree experience for customers through offline formats. We don’t want to miss out on this huge potential and this investment is going to help us push the levers in this direction,” said founder and CEO Kaushal Dugar.
With this new funding in hand, Teabox will also look to automate packaging and other processes so that the company can increase its production by at least three to four times to meet ever-increasing demand.
Teabox uses online partners like Amazon to sell their product overseas.
“We are excited about backing the challenger in a large category with a demanding customer. We feel that Teabox’s dynamic team and its innovative supply chain of tea from plantations to cup will enable them to provide the freshest tea to consumers worldwide and redefine the category,” said Harshavardhan Bothra, principal at RB Investments.