The funds raised will be utilised to expand marketing efforts, increase production capacity, and enhance research and development for new products.
Premium tea brand Freshleaf has raised Rs 1 crore in a seed round led by Inflection Point Ventures. The funds raised will be utilised to expand marketing efforts, increase production capacity, and enhance research and development for new products. By focusing on these key areas, Freshleaf aims to strengthen its brand presence, meet growing demand, and bring exciting new teas to its consumers.
This investment will enable Freshleaf to offer high-quality teas that enrich the tea-drinking experience for modern consumers.
Since its inception in 2022, Freshleaf has built a strong offline presence, now reaching over 550 stores across 40 cities in India, as per a company statement. The company says that they offer an innovative range of flavors in both sparkling and traditional teas, catering to diverse tastes and preferences. Freshleaf aims to deliver premium-quality tea at an affordable price, starting at Rs. 130.
Through strategic marketing initiatives, such as interactive tastings, the company says that it has effectively enhanced its brand recognition and engagement with its customer base. It is now venturing into modern retail and quick commerce while extending its reach into the UAE market, aiming to enhance accessibility and market presence, thus solidifying its position as a leading tea provider.
In 2023, the Indian tea market was valued at around ₹9,277 crores ($11.1 billion) and is estimated to reach about ₹12,277 crores ($14.7 billion) by 2032, with an annual growth rate of 3.18 percent. On a global scale, the tea market was approximately ₹41,355 crores ($49.53 billion) in 2023 and is forecasted to grow to around ₹82,094 crores ($98.29 billion) by 2033, with an expected yearly growth rate of 7.09 percent. Some tea start-ups in India include Chaayos, Chai Sutta Bar, Chai Point, and others.