F&B Paper Boat raises $50 million from Singapore Sovereign Fund GIC

• ByStartupStory     |    August 25, 2022

Hector Beverages, which produces soft drinks & beverages under the Paper Boat brand, is raising a new round of funding from Singapore sovereign fund GIC for approximately $50 million. GIC has made its first investment in the Bengaluru-based business. According to its regulatory filing with the Registrar of Companies (RoC), the business has passed a special resolution to offer 50,27,273 Series D party paid-up preference shares at an issue price of Rs 795.66 to raise Rs 400 crore or $50 million.

Notably, shares issued to Lathe Investments Pte (a wholly owned subsidiary of GIC Fund) will be partially paid up to Rs 397.83 per share. The remaining sum will be paid by the provisions of the sharing holding agreement. According to the documents, Paper Boat will use the funds for business expansion and other basic working capital needs. After a two-year hiatus, the next round has arrived. As part of the Series C round, the business raised around Rs 28 crore ($3.7 million) in July 2020 from Sofina Ventures, A91 Emerging Fund. Sequoia Capital, Catamaran Ventures, and Trifecta Capital are among the investors in the 10-year-old company.

Paper Boat, founded by former Coca-Cola executives Neeraj Kakkar and Niraj Biyani, sells packaged juices, coconut water, traditional Indian snacks, and dry fruits. It currently has 500,000 outlets around the country. Following the new funds, GIC will own 25% of Paper Boat. According to Fintrackr, Paper Boat will be worth roughly $205 million (post allotment).

According to Kakkar, the company is profitable and has a run rate of Rs 700 crore. While the company has yet to disclose its FY22 results, it had operational revenue of Rs 243 crore in FY21. In addition, the company recorded a 37% decrease in losses to Rs 63.7 crore for the fiscal year ending March 2021. Aside from Paper Boat, GIC has sponsored a slew of growth and late-stage firms in 2022, including Wow Skin, CRED, Falcon X, and Delhivery (now a public company).

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