Founded in 2016 by Vijender Reddy Muthyala and Manas Ranjan Hota, Drink Prime operates a subscription-based platform offering IoT-enabled water purifiers to households.
“We raised this capital not for operational needs, but to double down on technology and to support our next phase of expansion,” said Muthyala, who’s also the CEO. The company plans to start operations in 20 new cities.
The Bengaluru-based startup had previously raised $3 million in a round led by SIDBI Venture Capital in May 2024.
The company’s operating revenues have increased from Rs 4.6 crore in FY21 to Rs 75.1 crore in FY25. Its net losses widened to Rs 27.4 crore in FY23 before narrowing to Rs 11.5 crore in FY25, according to Tracxn.
The company plans to invest in improving its IoT and data capabilities to enable better device monitoring, predictive servicing, and overall customer experience.
“About 80% of our customers are first-time water purifier users — earlier dependent on bottled water — while 20% have shifted from legacy purifier brands,” Muthyala added.
In August 2021, the firm raised around Rs 21 crore in a pre-series A round led by Sequoia Capital’s accelerator Surge, with participation from Omidyar Network India. In 2022, it followed this up with Rs 60 crore ($7.5 million) in a mix of equity and debt, as earlier reported by ET. The equity round was led by Omidyar, Sequoia Surge, and 9Unicorns, while the debt financing came from Northern Arc Capital and Unitus Capital.
According to Tracxn, the company has raised about $20 million till date.
Drink Prime competes with players such as Livpure Smart, a subscription-based water purification service, Gurugram-based Zunpulse, which has raised around $4.2 million till date, and Bengaluru-based OCEO, which focuses on smart water purifiers and is in the early stages of fundraising.