GRM Overseas, India's third-largest rice exporter, said on Wednesday that it bought a 44% stake in the parent of instant coffee maker Rage Coffee, as a part its move to invest in various new-age consumer brands.
GRM, which mainly deals with rice, flour and edible oils, said it bought the stake in Swmabhan Commerce through primary infusion and secondary buyouts, but did not disclose financial details, citing confidentiality reasons.
The company becomes the largest shareholder in three-year-old Rage Coffee's parent, whose investors include Sixth Sense Ventures, and prominent figures such as cricketer Virat Kohli. The release did not say who sold their stakes.
The stake purchase, said GRM, is its first major deal under its new investment platform set up to spend 2 billion rupees (nearly $24 million) in new-age direct-to-consumer brands.
GRM said these investments are aimed at deriving 20% of its revenue from new-age companies such as Rage Coffee.
For its part, Rage Coffee plans to open coffee shops, entering the brick-and-mortar space dominated by international brands such as Tata Starbucks and Barista as well as private equity-backed startups like Third Wave and Blue Tokai.
GRM said it expects to complete the purchase in one year.
Its stock price jumped as much as 4.3% on the news before settling 1.7% higher.
