O’Be Cocktails, which raised funding from Bhavish Aggarwal, shuts operations

Bengaluru-based startup O’Be Cocktails has shut down its operations after more than five years in the market. Founded in July 2019 by entrepreneur Nitesh Prakash, the ready-to-drink cocktail startup had aimed to bring a premium experience to consumers by perfecting its blends through more than a hundred iterations.

Despite a network of 22 private distributors and two government contracts, it struggled to stay afloat in a market Prakash described as “commoditized.”

A difficult decision

Prakash announced the closure on LinkedIn, noting that it was one of the hardest calls he has ever had to make. He said O'Be found it challenging to maintain its vision for a premium cocktail experience when the alcoholic beverages industry tends to treat its products as commodities.

O'Be explored every possibility for a sale over the past year but did not succeed in finding a buyer. Prakash explained that he and his team had tried to ensure the flow of cocktails would continue, yet they ultimately decided to cease operations.

"Our consumers, team, investors, and friends have been the pillars of support throughout this journey. Without you, we would not have come this far. Therefore, we want to take a moment to sincerely thank you for your support, guidance, and understanding over the last 5.5 years," Prakash added.

Funding journey and expansion

O’Be Cocktails raised about Rs 3.5 crore in an angel round in August 2021, led by investors such as First Cheque, LetsVenture, Ola’s Bhavish Aggarwal, Tracxn founder Abhishek Goyal, and Sprout Investments.

The startup also secured a pre-Series A round in November 2023, led by Inflection Point Ventures, to help the business expand. At its peak, it was present in nine Indian states and even extended its operations to Bhutan.

The startup claimed its products were available in more than 1,700 premium wine outlets, offering convenience to cocktail enthusiasts who preferred ready-to-drink options.

Even though consumer preferences in India are shifting toward more premium and sustainable products, the closure of O’Be Cocktails highlights the ongoing hurdles faced by many homegrown Alcobev startups.