Mumbai, 8 September 2025 – Misfits, a Mumbai-based startup credited with creating India’s first prebiotic soda, has raised an undisclosed amount in its latest funding round from a group of early investors.
The round was led by Nu Ventures, alongside angel investor Subba Rao Telidevara, Turiya Advisory Services’ managing partner Bijoy Daga, and corporate finance consultant Robert Pancras. The group includes backers who were among the early investors in Acko Insurance, Third Wave Coffee and Fox Tail.
Health-focused alternative to sodas
Founded by brothers Aditya and Yash Pai, Misfits markets itself as a health-conscious alternative to traditional carbonated beverages. Its flagship drinks contain zero added sugar, are low in calories, and are enriched with prebiotics intended to support gut health.
The company says the fresh capital will be directed towards boosting production capacity, widening distribution and expanding its presence in new markets across India.
“We are thrilled to partner with investors who share our vision of revolutionising India’s beverage landscape,” said Aditya Pai, Misfits’ co-founder. “This funding validates our mission to provide consumers with a guilt-free alternative to sugar-loaded sodas.”
Plans for expansion
Misfits’ co-founder Yash Pai said the startup is now focused on introducing new flavours and scaling operations while keeping its clean-label promise intact. “We’re excited to build a brand that resonates with health-conscious consumers across India,” he added.
The founders say demand for functional beverages is growing rapidly in India, with consumers increasingly seeking options that combine taste with health benefits.
Growing investor confidence
Investors point to the company’s positioning within this evolving sector as a key reason for their backing.
“Misfits represents exactly the kind of innovative brand that can transform traditional categories,” said Venk Krishnan, founder of Nu Ventures.
Angel investor Subba Rao Telidevara added: “The founders have identified a genuine market gap and developed a product that delivers functional benefits while maintaining the taste consumers expect from sodas.”
Clean-label promise
Misfits says it differentiates itself by using plant-based ingredients, natural sweeteners and no preservatives. It also shares third-party lab reports publicly, in a bid to build consumer trust.
The company is part of a wave of new Indian beverage brands tapping into rising awareness about digestive health, sugar reduction and natural formulations.
With the latest backing, Misfits is aiming to carve out a niche in the competitive but fast-growing functional drinks market.
