Peping raises Rs 2.5 crore to expand its functional beverage brand in India
India’s beverage market is evolving quickly as consumers become more conscious about what they drink. Traditional sugary sodas are slowly facing competition from healthier alternatives that promise better nutrition, fewer calories, and functional health benefits.
One emerging startup trying to tap into this shift is Peping, a fast-growing FMCG brand focused on functional beverages. The company has recently raised Rs 2.5 crore in a funding round led by IAN Angel Fund, the evergreen investment arm of the IAN Group. The round also saw participation from several other angel investors who believe in the brand’s vision.
With this fresh capital, Peping plans to scale its distribution network, strengthen supply chain capabilities, invest more heavily in brand building, and introduce new flavors to its product lineup.
The startup is positioning itself as a modern beverage brand designed specifically for Indian consumers who want healthier drinks without compromising on taste.
The idea behind Peping
A functional beverage built for everyday consumption
Peping was founded by Chirag Maheshwari and Prateek Maheshwari with the goal of creating a beverage brand that blends health benefits with great taste.
The founders noticed a gap in the Indian beverage market. While there are several health-focused drink options globally, many of them are either too expensive, too niche, or not designed with Indian taste preferences in mind.
For example, kombucha has become popular among health enthusiasts, but it remains relatively unfamiliar to many consumers. Similarly, probiotic drinks in India are often targeted primarily at children or marketed as medical supplements.
Peping aims to bridge this gap by creating a functional soda that is enjoyable to drink while also supporting digestive health.
The brand offers two types of products designed for different consumption moments: prebiotic fizzy drinks and probiotic digestive shots.
Both are designed to be easy to consume daily, affordable, and convenient to store.
What makes Peping drinks different
One of Peping’s main selling points is its focus on functional ingredients that support gut health.
The company’s fizzy drinks are low-calorie and contain prebiotics, which are nutrients that help beneficial gut bacteria grow. Healthy gut bacteria are often linked to improved digestion, better immunity, and overall well-being.
Alongside these sodas, Peping also offers probiotic digestive shots. These contain live beneficial bacteria that support gut balance and digestive health.
This dual format allows Peping to cater to different use cases.
Someone might drink a fizzy soda during lunch or dinner as a refreshing beverage, while the probiotic shot can be consumed as a quick digestive boost.
By offering both formats, the company hopes to become part of consumers’ daily routines rather than being treated as an occasional health product.
How Peping plans to use the new funding
Expanding distribution across retail and quick commerce
One of the biggest priorities for Peping after raising funds is expanding its distribution.
Currently, the startup already sells its products on several popular online grocery and quick commerce platforms. These include Swiggy Instamart, Zepto, and BigBasket, where consumers can order drinks with fast delivery.
Beyond online channels, Peping is also available through platforms like First Club and physical retail chains such as Namdhari’s and Ratnadeep.
The brand is currently stocked in more than 200 retail outlets across Bengaluru.
With the new capital, Peping plans to expand beyond its current footprint and make its products accessible in more cities and stores.
For a beverage brand, strong distribution is often the key factor that determines success. The more visible and accessible a product is, the more likely consumers are to try it.
Strengthening the supply chain
Another major focus for Peping is improving its supply chain capabilities.
Efficient production and logistics are essential for beverage startups, especially when they aim to scale quickly. Drinks require careful handling, storage, and transportation to maintain quality.
To improve efficiency, the company has built its own production facility using off-the-shelf components.
This setup allows the startup to maintain greater control over manufacturing while keeping costs manageable.
One notable step Peping has taken is bringing soda canning operations in-house. Instead of relying entirely on third-party manufacturers, the company now handles the canning process internally.
This approach helps improve product quality while also increasing margins.
Better control over production can also make it easier for the brand to experiment with new flavors and product variations.
Investing in brand awareness
In addition to expanding operations, Peping plans to invest more in building its brand identity.
The functional beverage category is still relatively new in India. This means many consumers are unfamiliar with terms such as prebiotics, probiotics, or gut health drinks.
As a result, education and marketing play a major role in helping people understand why these drinks might be beneficial.
Peping plans to use part of the funding to strengthen its marketing efforts, increase visibility, and build a stronger connection with health-conscious consumers.
Introducing new flavors
Product innovation is another area where Peping intends to focus.
Beverage brands often succeed when they offer a variety of flavors that appeal to different taste preferences.
The company plans to introduce new product variants in the coming months. These flavors will likely build on the brand’s existing focus on refreshing drinks that align with Indian taste profiles.
Introducing new options can help attract repeat customers while also bringing new consumers into the category.
How Peping is building its presence beyond retail
Expanding into gyms, cafés, and offices
In addition to retail and quick commerce platforms, Peping has also found success through partnerships with other venues.
The brand is currently present in gyms, cafés, and corporate offices through catering collaborations.
These partnerships allow the company to reach consumers in environments where health and wellness are already a priority.
For example, gyms often attract people who are actively looking for healthier drink options. Offices and corporate campuses also provide an opportunity to introduce convenient functional beverages to working professionals.
This strategy helps the brand create more everyday consumption moments.
Instead of being limited to grocery purchases, Peping products can become part of daily routines in multiple settings.
Investor confidence in the brand
The funding round was led by IAN Angel Fund, part of the IAN Group, which is known for backing early-stage startups with strong growth potential.
The round also saw participation from other investors including Signal Ventures, Eleven Eleven, and several angel investors.
For early-stage consumer brands, securing funding from experienced investors often provides more than just capital.
Investors can also offer strategic guidance, industry connections, and support in scaling operations.
Chirag Maheshwari, co-founder of Peping, said the team is excited to welcome IAN Group and other investors to support the company’s growth journey.
He noted that beyond sharing the startup’s vision, these investors bring valuable expertise that will help the company expand distribution and strengthen its brand presence.
The future of functional beverages in India
The functional beverage market is still in its early stages in India, but it has significant growth potential.
Globally, consumers are increasingly choosing drinks that offer additional health benefits beyond basic hydration or refreshment.
Products focused on gut health, immunity, and low-calorie alternatives are gaining popularity.
In India, rising health awareness among younger consumers is creating opportunities for startups like Peping.
Urban consumers in particular are becoming more interested in healthier lifestyle choices, including better food and beverage options.
If Peping succeeds in building strong distribution, maintaining product quality, and educating consumers about the benefits of its drinks, it could become a prominent player in the emerging functional beverage category.
With fresh funding in place and expansion plans underway, the startup is now preparing for the next phase of growth as it tries to bring its functional soda and digestive shots to a wider audience across India.
