United Spirits is investing in Indian start-up Nuvola Spirits, taking a 10.1% stake in the spirits company.
In a stock exchange filing, the Diageo-controlled group said its board had approved the Rs26.9m ($278,676) cash investment through subscription compulsory convertible preference shares and equity shares in Nuvola Spirits.
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The transaction is due to be completed by 21 September.
The owner of McDowell’s No.1, Royal Challenge and Signature said the investment “aligns with its ongoing strategy of backing innovative founders and capitalising on emerging consumer trends within the premium craft beverage segment”.
Nuvola Spirits was founded in 2023 by Raghav Sachdeva and Aakriti Sachdeva.
It makes products spanning Korean and Italian-inspired drinks, including soju, limoncello, and meloncello, sold under the brands Mikiamo and Seoulmate.
The New Delhi-based company posted audited turnover of Rs3.8m in the year ended 31 March 2025 and reported unaudited sales of Rs35m in fiscal 2025-26. Its revenue is entirely from India.
Under a shareholder agreement, United Spirits will have the right to appoint one director and one observer to Nuvola Spirits’ board.
The agreement also gives United Spirits an option to acquire the remaining shares held by other shareholders if Nuvola Spirits meets certain pre-agreed milestones.
In June last year, United Spirits agreed to acquire a majority stake in gin maker Nao Spirits for about Rs1.3bn, after first buying into the owner of Hapusa and Greater Than in 2022 and raising that holding in 2023.
Two months before, United Spirits also took a 15% stake in Inspired Hospitality, which owns agave-spirit brand Pistola.
At the same time, the company has been shedding non-core and manufacturing assets.
United Spirits began reviewing its Royal Challengers Sports business in November, calling the unit “non-core to our alcobev business”. In March, it agreed to sell the Royal Challengers Bengaluru franchise owner RCSPL for Rs166.6bn.
More recently, last month, United Spirits said it would close another Hyderabad plant under its supply-chain agility programme and agreed to sell its Gopalpur site in Odisha to Cupid Breweries & Distilleries for Rs225m.
Separately, United Spirits reported a 51.5% increase in net profit to Rs3.91bn for the quarter to the end of June. It booked a 5% rise in operational revenue to Rs61.13bn over the previous year.
