Pune-based beverage startup Rio Innobev raises Rs 10 crore in funding, aims to scale to 1 lakh outlets

Pune-based beverage startup Rio Innobev Pvt. Ltd. has raised Rs 10 crore in its first institutional round. The pre-Series A funding was led by Atomic Capital, with participation from a group of undisclosed marquee investors.

The funding marks a pivotal milestone for the startup as it prepares for aggressive nationwide expansion and product innovation.

Currently available in over 35,000 retail outlets across Maharashtra and Gujarat, it is targeting 100,000 outlets over the next three years while deepening its omnichannel presence with quick commerce platforms and modern trade networks.

Rio Innobev's offerings

Co-founded in 2014 by Rahul Sangoi, Rio Innobev has positioned itself as a challenger brand in a space long dominated by global incumbents. Its flagship products — RIO Bubbly Fruit Drink (BFD) and RIO BOOM Energy Drink — cater to Gen Z and millennial consumers with a focus on bold flavours, functional ingredients, and affordability.

RIO BFD offers 15% real fruit juice, vitamin C, and honey while claiming 25% less sugar than other brands. RIO BOOM caters to young, aspirational consumers with a bold taste and energy-boosting formula, all at an accessible price point.

"When we started RIO, our mission was to create a beverage brand that reflects the energy, tastes, and aspirations of a new generation of Indian consumers," said Sangoi.

"This fundraise marks more than just capital, it is a validation of everything we have built and a springboard for where we are going. With this backing, we are doubling down on what we do best, expanding our footprint aggressively, innovating with speed, and delivering products that excite and energize. Our goal is to make RIO a household name, and this is just the beginning of that journey," Sangoi added.

The startup claims to have remained EBITDA positive since inception. From 7.5 lakh units in its first year, it now sells more than 15 million cans and bottles annually, produced at its Pune-based manufacturing facility, the startup said.

Purpose of fundraising

Rio Innobev plans to use the raised capital for distribution expansion, brand building, product innovation, and manufacturing upgrades. The startup aims to expand its portfolio across indulgence, health, and functional beverage segments, catering to evolving consumer preferences.

Apoorv Gautam, Founder of Atomic Capital, said his firm was drawn to Rio Innobev's blend of brand clarity, disciplined execution, and category-defining potential. 

"This is not just a beverage company; it's a movement that taps into the cultural and lifestyle pulse of young India. The team's clarity of vision and ability to execute at scale set them apart. We believe Rio is on the verge of becoming a breakout consumer brand, and we're excited to support them in this journey," Gautam said.

Atomic Capital, launched in 2024, closed an oversubscribed Rs 350 crore debut fund within its first year. The fund focuses on early-stage consumer and consumer-tech startups and has taken an active, operational approach with portfolio companies.

Aiming to become a Rs 500 crore brand

Rio Innobev sells its products across modern trade platforms such as Dmart, Reliance Retail, 7-Eleven, and Wellness Forever, and quick commerce channels like Zepto, Swiggy Instamart, and Blinkit.

The startup plans to triple its general trade presence and penetrate deeper into metros and mini-metros. Notably, it aims to become a Rs 500 crore brand in the next four years.