Teabox raised $7 million in Series B funding

Teabox.com raised US$7 million in Series B funding and extended it to US$10 million where talks with other investors are taking place. The online startup of premium tea sellers based in Siliguri is raising the latest funding led by Accel Partners and Ratan Tata to boost production and growth.

Teabox founder and CEO Kaushal Dugar said on Wednesday it had raised US$7 million and talks with other investors were at least US$10 million. The new funds will be used for capital expenditures, marketing and encouraging growth.

Tinuku Teabox raised $7 million in Series B funding

"We may be the only global tea brand that has a strong digital presence. We do multi-channel and do not want to lose this great potential. New investments will help us push towards this goal," Dugar said.

Startup was founded by Dugar in 2012 and has raised A Series of US$6 million in 2015. Currently the company is sending tea to more than 100 countries from warehouses in Siliguri. The latest funds to expand the operation, storage capacity and new natural packaging of nitrogen.

Teabox will also automate packaging and other processes where the company increases production at least three to four times to meet growing demand. Since the beginning of 2015, Teabox generates about 95% of the total business from the international market.

"Online and offline expansion will be the main focus for us. The international market contributes to our overall revenue, but we also see demand in India has increased significantly over the past few years," Dugar said.

Teabox has attracted a variety of investors, including Robert M. Bass as a customer and then turned into an investor after identifying the unique potential of the early stages of the business. Teabox delivers a wide range of premium teas mainly from Darjeeling, Assam, Nilgiris and Nepal.

Currently the company has a catalog of over 200 tea plantations where online shoppers have the option to choose from various subscription plans to receive tea sample boxes. Dugar says Teabox has sent at least 40 million tea cups.