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Poppi, a Dallas-based prebiotic soda maker, raised a $25 million Series B round of funding led by an existing investor, co-founder Allison Ellsworth tells Axios.

Why it matters: An early entrant in its category, Poppi has its eyes on the overall $40 billion soda market.

Details: Cavu Consumer Partners has provided most of the company's financing, Ellsworth notes.

Additional venture investors, per PitchBook, include Constellation Capital, 1/1 Capital, ZoiBel, Plus Capital and Rocana Ventures. 

The lengthy list of individual investors in PitchBook includes Olivia Munn, Ashton Kutcher, Noah Beck, Halsey, Russell Westbrook and Kevin Love, among others.

Flashback: Gut and health issues as well as fatigue led Ellsworth to research her symptoms and ultimately to apple cider vinegar, which had been used as a homeopathic remedy.

While she disliked the intense flavor, it worked so she sought to concoct a beverage she enjoyed drinking, leading to the eventual creation of Poppi.

Ellsworth and her husband appeared on Shark Tank where they met Cavu's co-founder Rohan Oza, who ended up investing in the brand and pushed them to change the name.

The product was relaunched under its new name Poppi in March 2020 during the early days of the pandemic, which Ellsworth said taught the company to be financially disciplined.

What they're saying: "What we realized is we had a better-for-you soda," Elsworth said.

By the numbers: While Ellsworth declined to comment on revenue, she did say Poppi increased sales 148% year over year, was the largest brand in its category and is one of the fastest-growing nonalcoholic beverages in the U.S.

Competitor Olipop told Axios in July that it would generate $100 million in sales by the end of this year.

This year Poppi will be in 18,000 store doors and next year it will be in 30,000 store doors.

Of note: Poppi will have completely built out its direct store delivery (DSD) distribution network by end of January, which will help the company develop stronger relationships with retailers and obtain better displays.

Poppi will also start appearing in club retailers and school cafeterias.

The big picture: Ellsworth says Poppi chose to build a full DSD network was to keep the company's liquidity options open.

"We want to really have the opportunity to go with the best partner for Poppi," she explains, noting that the beverage giants will likely acquire rather than create their own versions from scratch.

She says conversations are occurring, but there's nothing immediate and there are many paths open to the company.

The bottom line: "I want Poppi to be the soda for the next generation," Elsworth says.

Poppi nets $25M for gut-friendly soda

Poppi raised $25 million to bring gut friendly soda to market.

Tik Tok stars Lars Gummer and Tinx, from left to right, appear before Christmas trees holding cans of Poppi-branded soda.

TikTok stars Lars Gummer and Tinx (from L to R) appear at a recent Poppi event. Photo: Vivien Killilea/Getty Images for Poppi

Venture capital

Poppi, a Dallas-based prebiotic soda maker, raised a $25 million Series B round of funding led by an existing investor, co-founder Allison Ellsworth tells Axios.Why it matters: An early entrant in its category, Poppi has its eyes on the overall $40 billion soda market.

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Poppi nets $25M for gut-friendly soda

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