Indian online tea seller ‘Teabox’ has raised $6 million in funding in Series A round. The funding was led by JAFCO Asia along with contributions from Accel Partners, Keystone Group LP and Dragoneer Investment Group, however the amount of individual contributions from investors hasn’t been disclosed.
Teabox intends to get a foothold on the global tea market as it aims to direct this funding to an international direction. Japan, Korea and China are the places where they wish to replicate their success using the same business model as in India, but with localized customer support and speedy delivery. An expansion in the American market is also on the cards. As per a report by Techcrunch the Tea Seller has acquired an executive from a top coffee brand to lead their American crusade.
Regarding the new funding acquired Kaushal Dugar, Founder and CEO of Teabox said. “We are extremely privileged to have JAFCO and Dragoneer as our investment partners as we expand into new markets, primarily – China, Japan and Korea where they have strong connect and also to have Robert Bass who first discovered Teabox as a customer and has now participated in this round as an investor through Keystone Group. And of course Accel has been our growth partner helping and guiding us since they came on board post seed funding”
“We want to leverage the internet to build the world’s first vertically integrated tea e-commerce service,” Kaushal Dugar, Founder and CEO of Teabox said. “[This funding round will] lets us go to the next level; build a disruptive team, target new markets and build a global brand.” he added.
Teabox was started in 2012 at Siliguri, in North East India with a basic idea to sell tea worldwide through Internet. The company works directly with over 200 plantations in India and Nepal, with its own storage facilities near to plantations. It handles distribution, supply, storage and logistics itself, that’s an arrangement that speeds up the time taken for tea to reach customers.
The company now has its head office in Bangalore and receives orders from over 75 countries. Exact figures haven’t been disclosed, but they claim to have grown 10x over the past year with 20 million cups (around 40,000 kg) shipped to date.