BT Exclusive: GRM Overseas’ introduces 10X Ventures to support growth of new-age FMCG brands in India

GRM Overseas, a publicly-listed FMCG company and a prominent rice exporter, has introduced 10X Ventures, an initiative focused on supporting the growth of new-age FMCG brands in India. Recently, GRM Overseas also acquired 44% stake in Rage Coffee.

This move marks GRM’s entry into a digital-first brand portfolio, reflecting the company’s efforts to adapt to the rapidly-changing market environment.

The inception of 10X Ventures stems from a clear understanding of the dynamic shifts in consumer behaviour and market trends, says Atul Garg, Managing Director of GRM Overseas which has long been a key player in the traditional FMCG sector, but with 10X Ventures, they aim to create a “blended house of brands”—a unique combination of traditional, well-established businesses and innovative, digital-first brands.

According to Garg, a fund of Rs 136 crore has been raised through preferential shares. The acquisition will be financed using a combination of this raised capital and GRM's share swaps.

“Our idea is not just to buy brands but to build and nurture them,” explained Garg. The strategy is to acquire brands that already have a significant market presence, with a sales threshold of around Rs 25 crore. The focus is on youth-oriented brands that have unique selling propositions (USPs) or “moats” that set them apart in the market, he added.

GRM Overseas is closely collaborating with venture capital funds like Sauce.vc, Sixth Sense Ventures, and Singularity holdings VC to identify and invest in promising brands. “These partnerships are not merely financial but strategic, leveraging the expertise of each partner to drive growth,” Garg says.

For instance, Sixth Sense Ventures is a key partner in scaling up Rage Coffee, Garg added.

Garg notes that for Rage Coffee, 10X Ventures will leverage its traditional distribution strengths alongside the digital expertise of its partners, aiming to achieve Rs 100 crore in sales within the next 18 months while maintaining EBITDA-positive results. It will aim to strengthen Rage’s export presence.

While there may be parallels between 10X Ventures and the Thrasio model, Garg is quick to clarify that their approach is distinct. Unlike Thrasio, which focuses purely on online brands, 10X Ventures aims to integrate these digital-first brands into offline retail and export channels. This hybrid approach leverages GRM’s established distribution networks to drive growth, especially in categories like coffee, where they see significant potential.

As part of its expansion strategy, GRM is also setting up a new office in Gurgaon, which will serve as the hub for 10X Ventures’ operations.