Bengaluru-based water-as-a-service startup DrinkPrime raised ₹20 crore (approximately $2.4 million) in a fresh funding round at a valuation of ₹340 crore.
This round marks a 30% valuation premium over its previous valuation of ₹261 crore, signaling strong investor confidence in the subscription-based IoT hardware model.
Funding Details & Lead Investors
The round was a bridge investment led by existing institutional backers:
- Lead Investors: Artha Venture Fund and Mirabilis Investment Trust, who contributed ₹10 crore each.
- Shareholding: Following this allotment, both Artha and Mirabilis hold approximately a 2.94% stake each in the company on a fully diluted basis.
- Pricing: Regulatory filings indicate that the board approved the allotment of Series A3 CCPS and equity shares at an issue price of ₹9,205 per share.
Financial Performance (FY25)
DrinkPrime’s valuation jump is backed by significant improvements in its top and bottom lines for the 2024-25 fiscal year.
| Metric | FY24 | FY25 (Reported) | Change |
| Operating Revenue | ₹46.81 Crore | ₹72.13 Crore | +54% |
| Net Loss | ₹14.14 Crore | ₹11.53 Crore | -18.5% |
| Active Subscribers | ~1 Lakh | Targeting 1 Million by end of 2026 | — |
The “IoT-on-Subscription” Model
Founded in 2016 by Vijender Reddy Muthyala and Manas Ranjan Hota, DrinkPrime has carved out a niche by treating water purification as a utility rather than a luxury appliance purchase.
- Smart Monitoring: Unlike traditional RO purifiers, DrinkPrime’s units are IoT-enabled, allowing the company to monitor water quality and filter life in real-time.
- Automated Servicing: The platform uses sensor data to schedule maintenance before a part fails, ensuring consistent water quality for subscribers.
- Accessibility: By offering plans starting as low as ₹299/month, the startup targets urban “migrant” populations (students and young professionals) who prefer flexibility over the high upfront cost of buying a purifier.
Strategic Use of Funds
The fresh capital will be utilized to:
- Expand Footprint: Deepen penetration in existing markets like Delhi-NCR, Hyderabad, and Bengaluru while entering new Tier-1 cities.
- Product Innovation: Enhance the AI-driven “water quality map” that helps customize filtration based on the specific water source of a neighborhood.
- Infrastructure: Scale the servicing and supply chain to meet the ambitious goal of serving one million households by the end of 2026.
