After more than a year of searching for a buyer, D2C beverage brand O’Be Cocktails has closed its operations. The announcement was made by the startup’s founder and CEO, Nitesh Prakash, via a LinkedIn post, expressing regret over the cessation of the brand. "We have received immense love and support over the years, but despite our efforts, the journey has come to an end," he mentioned.
Founded in 2019, O’Be Cocktails specialized in ready-to-drink cocktails available in various markets, including major cities like Bengaluru, Goa, and Hyderabad, as well as other states. At its peak, the brand was featured in over 1,700 wine outlets and collaborated with 22 distributors.
The startup had notable backing from influential investors, including Bhavish Aggarwal of Ola, Abhishek Goyal from Tracxn, and Sprout Investments. It recently concluded a Pre-Series A funding round in 2023, although the exact funding amount was undisclosed.
Prakash attributed the shutdown to the challenges of operating in the commoditized Indian alcobev market. He explained that the market’s price sensitivity contrasted with the company’s vision of creating a premium cocktail experience. "After considerable reflection, it became clear that the alcobev industry is not consumer-driven, which contradicts our objective of offering a premium and convenient cocktail experience,” Prakash stated, indicating that all avenues for a potential sale had been exhausted.
O’Be Cocktails is not alone in its struggle; data indicates that 12 startups ceased operations in 2023 due to the ongoing funding winter. For example, Coca Cola-backed Thrive closed its doors in December 2024, citing resource limitations and stiff competition from bigger players in the food tech sector.