The Success Brewer

Rage Coffee's Bharat Sethi shares with Entrepreneur India the brand's journey into the coffee business

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Building a name in an expansive, fast-growing coffee industry in India, Rage Coffee's founder Bharat Sethi identified a business opportunity in the digital space. Sethi believes that one of the more important factors behind the growth of Rage Coffee was the tenacity within the team to create a brand that became the default name when it came to the digital ecosystem. "We are onmi-channel, when it comes to reaching our customers. However, our DNA is digital, where we take data-driven approach and connect with customers on a daily basis. The comprehensive research in product development and smooth distribution methods have allowed us to develop genuine consumer connections and garner their loyalty,"Sethi tells Entrepreneur India.

Bharat Sethi, Founder, Rage Coffee

Sethi observes that when he began his journey, there was a marketing status quo. There was no disruption happening in the coffee markets back then, neither online no offline. However, the market has evolved through the years. Commenting on the development, Sethi says, "As we started identifying consumer needs and preferences during initial days of research, we identified the huge untapped potential it had. The markets are rising steadily and the consumer tastes and preferences have evolved as well. The depth of the market and coffee categories has also increased with the distribution channels expanding as well." As of now, Sethi identifies the total addressable market for Rage at INR 6500 crores, which is going to increase to INR 12,500 crores by 2025.

This projected growth has been derived from a stellar performance by the company in the past years. The company has seen a 500 percent year-on-year growth rate. Sethi says that being a digitally first brand was instrumental in securing this growth. "Being a digitally native d2c brand we have been able to make data-backed decisions. That combined with innovative manufacturing practices, seamless distribution, accessible retailing, and accelerated delivery has led to the success of the brand," he said.

Rage has witnessed a growth rate of 500% year-on-year. Being a digitally native d2c brand, the brand has been able to make data-backed decisions. That combined with innovative manufacturing practices, seamless distribution, accessible retailing, and accelerated delivery has led to the success of the brand.

Sethi says that customer preferences has become the genesis from them for the conceptualization of something new. He explains that the coffee sector was dominated by a few selected brands earlier, making it a very tough space to compete in for new entrants. However, there was an unexplored expanse of the coffee market where innovation wasn't been tested or leveraged as much as it should have been. "As a result, without the advent of sectorial innovation, the consumer's options were severely limited. Our team at Rage has investigated the potential for innovation and is now putting it into practice. Product innovation that satiates the customers' demands is the need of the hour. The brand that will prosper in this space will be the one that can become a market leader by offering something novel alongside the conventional favorites," Sethi explains.

For Rage, the period 2021–22 ended on a high note, and with that comes the challenge of continuing to grow consistently.

Moving forth they are looking to grow our online and offline footprint across India. Our marketing and distribution activities will be ramped up. "We intend to maintain our 500 percent year-on-year growth by scaling up manufacturing, creating innovative new product offerings, and expanding our workforce," he explains.

Quick Facts

Bestseller: Original flavor

Total SKUs: 18

Team size: 150

Repeat customer ratio: 35% orders as repeat orders on its direct to customer website

Online platform resulting in maximum revenue: Y-O-Y growth is 500%

Split between offline and online sales: Rage employs an omnichannel approach, selling 50% of their products online and the rest offline. Over 2500 offline stores/ touchpoints