GRM Overseas, India’s third-largest rice exporter, announced on Wednesday that it has acquired a 44% stake in Swmabhan Commerce, the parent company of instant coffee brand Rage Coffee. This strategic move marks GRM’s entry into the new-age consumer brand market, with plans to invest approximately 2 billion rupees (nearly $24 million) in various direct-to-consumer brands.
The investment was made through a combination of primary infusion and secondary buyouts, although specific financial details were not disclosed due to confidentiality. With this acquisition, GRM becomes the largest shareholder in Rage Coffee, which has attracted investments from notable figures, including cricketer Virat Kohli and Sixth Sense Ventures.
Rage Coffee, which is three years old, aims to expand its presence by opening coffee shops to compete with established brands like Tata Starbucks and Barista, as well as newer startups such as Third Wave and Blue Tokai. GRM anticipates that these investments will help generate 20% of its revenue from new-age companies like Rage Coffee.
The announcement resulted in a positive market reaction, with GRM’s stock price rising by as much as 4.3% before settling 1.7% higher.