Archian Foods, the maker of Lahori Zeera, Lahori Nimboo, and Lahori Shikanji, is in the final stages of raising Rs. 400 to Rs. 450 crore from Motilal Oswal’s private equity arm and other investors. The fresh funding will help the company expand into new markets and boost product promotion to attract a broader customer base.

Investors are showing interest in beverage brands like Lahori as competition in the sector intensifies.

Initially, the company planned to raise a smaller amount, but the total fundraise increased as existing investors decided to dilute more stake to accommodate new investors, one of the sources said.

Based in Punjab, Lahori has a strong presence in northern India. It previously secured around Rs. 170 crore ($20 million) from Belgium-based Verlinvest, according to Tracxn. The company’s valuation, which was Rs. 700 to Rs. 750 crore in 2022, has now risen to around Rs. 2,500 crore, driven by significant business growth.

Lahori has expanded rapidly over the years. In FY22, it recorded revenue of Rs. 38 crore, which surged to Rs. 215 crore in FY23 and further grew to Rs. 316 crore in FY24, according to Tracxn data. The company is now expected to generate around Rs. 550 to Rs. 600 crore in revenue.

Notably, Lahori has been profitable since at least FY22. It posted a profit of Rs. 3 crore in FY22, which increased to Rs. 7.6 crore in FY23 and jumped to Rs. 23 crore in FY24.

Founded in 2017, the company has seen remarkable growth and profitability, attracting strong investor interest as it scales its operations and strengthens its position in the competitive beverage market.