Premium Cocktail Startup O’Be Shuts Down Despite Funding and Market Presence

O’Be Cocktails, a Bengaluru-based ready-to-drink (RTD) cocktail startup, has officially ceased operations after five years in business. Launched in 2019 by entrepreneur Nitesh Prakash, the brand set out to redefine how Indians consume cocktails—bringing bar-quality drinks in a convenient, bottled format. While the product was positioned to ride the wave of premiumization in India’s alco-beverage space, the company ultimately found itself unable to sustain operations in a sector described by its founder as “not consumer-backed but commoditized.”

In a heartfelt LinkedIn post, Prakash shared that shutting down O’Be was one of the most difficult decisions of his entrepreneurial journey. He revealed that the company had spent the past year actively exploring acquisition opportunities and seeking buyers, but eventually exhausted all strategic options. The realization, he said, was that despite a loyal customer base and well-crafted products, the systemic challenges of India’s alco-bev industry left little room for new-age, premium-first brands to survive long term.

O’Be was not without backing. In 2021, the startup raised ₹3.5 crore in an angel round from a lineup of marquee investors including Bhavish Aggarwal (Ola), Abhishek Goyal (Tracxn), First Cheque, LetsVenture, and Sprout Investments. In late 2023, O’Be secured a pre-Series A round led by Inflection Point Ventures. Its distribution footprint covered nine Indian states and even extended to Bhutan, with a strong retail presence across more than 1,700 premium wine shops and support from over 20 private distributors and two state contracts.

Despite this reach, the company faced mounting challenges. The Indian alcohol industry, known for its complex state-wise regulations, heavy licensing, and logistical constraints, remains one of the most capital-intensive and operationally demanding sectors. While the demand for ready-to-drink cocktails is growing globally, in India, it’s still an emerging category—one that needs deep pockets, longer gestation periods, and strong local networks to truly scale.

O’Be’s shutdown is a stark reminder that even a great product, strong branding, and credible investors may not be enough when the market structure itself doesn’t support new entrants. As India’s premium consumer base continues to evolve, the demand for innovation in the alco-bev space will persist—but the path forward requires more than product-market fit. It requires navigating one of the most heavily regulated consumer categories in the country.