360 ONE, TR Capital among buyers eyeing Paper Boat early backers stake

Mumbai | Delhi: PE firms 360 ONE and TR Capital are among potential buyers in talks to acquire about 20-22% stake held by early investors in the company that owns Paper Boat brand of traditional Indian beverages, multiple people aware of the development told ET. The deal is likely to value the target firm, Hector Beverages, around Rs 2,700-3,000 crore, they added.

Existing investors, including A91 Partners, which holds a 13.43% stake, and Sofina, with an 18% holding, are in discussions to partially exit their investments. Other early backers, such as Footprint Ventures, Sequoia Capital and angel investors, are looking to sell their entire stakes, said the people cited above.

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The secondary stake sale is expected to be completed ahead of Hector Beverages’ planned IPO in 2027. The exercise is aimed at cleaning up the company’s cap table and consolidating shareholding among key large investors, the sources said.

Avendus Capital is the advisor to the transaction.

Early investors looking to exit include Footprint Ventures (3.08%), Sequoia Capital (2.19%), Eudora Ventures (1.22%), Mirabilis Investment Trust (0.61%), Trifecta Capital (0.14%) and Stride Ventures (0.08%).

Lathe Investment Pte, a subsidiary and investment holding company of Singapore’s sovereign wealth fund GIC Pte, is the company’s largest shareholder, with a 34.97% stake. Founder Neeraj Kakkar holds 8.20%, according to Tracxn data. Hector Beverages also counts NR Narayana Murthy-backed Catamaran Ventures and Hillhouse Capital among its backers.

Angel investors together hold about 3.1% stake. Noted angel investors are Kanwaljit Singh, M K Hamied and Samina Vaziralli of Cipla, and Nadir Burjorji Godrej.

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According to sources, several mid-market private equity firms, including Apax Partners and Creador, had explored the stake acquisition but did not pursue the transaction further.

Spokespeople at Hector Beverages and A91 declined to comment. Mails sent to Sofina, Sequoia Capital (Peak XV), Trifecta Capital, Stride Ventures, 360 ONE, and TR Capital remained unanswered till press time. Footprint Ventures, Eudora Ventures, and Mirabilis Investment could not be reached for their comments.

Financials:

Hector Beverages was founded in 2009 by former Coca-Cola India executives Neeraj Kakkar and Neeraj Biyani. Two other founders — Suhas Misra and James Nuttall — left four-five years later. The company began by introducing Frissia protein drinks and Tzinga energy drinks, before it launched its flagship brand Paper Boat in 2013.

Hector Beverages reported revenue of $88.16 million (Rs 760 crore) in FY26, up 9.2% from $80.73 million (Rs 668 crore) in FY25, according to Tracxn data. However, Ebitda declined 50% to $4.9 million (Rs 42 crore) from $9.78 million (Rs 83 crore) in the previous fiscal.

The company is likely to post a revenue of Rs 1,000-1,200 crore with an ebitda of Rs 80-100 crore in FY27, added sources.

With ethnic fruit-pulp based beverages such as Aam Panna and Jamun Kala Khatta, and flexible spout-pouch packaging, Paper Boat created its niche by differentiating from rival beverages packaged in cartons or PET bottles.

Subsequently, Hector Beverages diversified to include other ethnic snack items, such as chikki and aam papad. It also opened another product line in traditional PET bottles for its drink brand Zesty.

Paper Boat competes with Wingreens’ Raw Pressery, B Natural from ITC, Dabur’s Real and other juice drinks from PepsiCo and Coca-Cola, in addition to multiple direct-to-consumer artisanal juices.

India’s ready-to-drink (RTD) beverages market is expected to double to $40 billion by 2030, a significant surge from $20 billion in 2025, according to an April 2026 report by Redseer. The report noted that the country’s beverage market is witnessing a clear shift toward functional options such as fibre, protein and supplement-based drinks.

Despite the growth, per capita consumption of RTD drinks in India remains at 15-20 litres, significantly lower compared with 100-120 litres in the US, 70-80 litres in China and 60-70 litres in the UK.

“What we are seeing is a fundamental shift in how consumers approach everyday consumption. Brands will need to rethink product innovation, pricing, and channel strategies to capture emerging demand across cohorts and micro-markets,” said Mrigank Gutgutia, partner, Redseer Strategy Consultants.