DrinkPrime, a Bengaluru-based water technology company, has raised Rs 20 crore in a funding round led by Artha Venture Fund and Mirabilis Investment Trust at about a 30% valuation premium, underscoring investor confidence in its subscription-led, IoT-enabled water purification business in India.
Details of the funding round
Regulatory filings show the board approved the allotment of 21,718 Series A3 compulsorily convertible preference shares, together with a small number of equity shares, at an issue price of Rs 9,205 per share. The transaction raised Rs 20 crore to support the company’s expansion and operational needs.
Artha Venture Fund and Mirabilis Investment Trust invested Rs 10 crore each. DrinkPrime said the fresh capital will be used to bolster its technology stack, enhance product offerings and accelerate geographic expansion in India’s growing home water-purification market.
Valuation and investor stakes
The round lifts DrinkPrime’s valuation to around Rs 340 crore (about $37 million), up from roughly Rs 261 crore — an increase of approximately 30%. Following the allotment, Artha Continuum Fund and Mirabilis Investment Trust will each hold about 2.94% of the company on a fully diluted basis.
Business model and recent financials
Founded in 2016 by Vijender Reddy Muthyala, Christopher Coelho and Nayan Bheda, DrinkPrime offers IoT-enabled water purifiers on a subscription basis, allowing customers to access purification services via monthly plans rather than purchasing units outright. The model focuses on recurring revenue and remote service management through connected devices.
Financially, DrinkPrime reported operating revenue of Rs 72.13 crore for FY25, a 54% increase from Rs 46.81 crore in FY24. Losses narrowed to Rs 11.53 crore in FY25 from Rs 14.14 crore a year earlier, indicating improving unit economics as the company scales operations.
Market context
India’s market for home water purification is expanding on rising awareness of water quality and growing demand for convenient, serviced solutions. Startups using subscription and IoT-driven service models have attracted investor interest for their potential to build high-retention customer bases and steady recurring income.
With new capital and improving financial metrics, DrinkPrime plans to deepen its service network and invest in technology to support safer drinking water access for urban and peri-urban households across India.
