New investment round to accelerate expansion and product development
The Austrian hydration brand waterdrop® has raised more than €100 million in a new funding round. With the investment, the company aims to accelerate its growth in Europe, expand retail distribution, and further invest in product development. New investors include Aspeya, Atlantic Grupa, and alpine skier and world champion Aleksander Aamodt Kilde.
With this capital injection, waterdrop® strengthens its position in the rapidly growing market for functional hydration. Existing shareholders such as Temasek, Döhler, and Bitburger also remain involved. The board of directors, led by former Western Union CEO Hikmet Ersek, continues to be actively involved in the company.
According to co-founder and CEO Martin Murray, the funding round marks a new phase in the brand's development. "We have laid a profitable foundation. With this investment, we can accelerate the expansion of our position," said Murray.
[The founders of waterdrop®: Henry Murray, Martin Murray, and Christoph Hermann (from left to right)
From niche concept to global hydration brand
waterdrop® was founded in 2016 in Vienna with a relatively simple mission: to encourage people to drink more water. The company does this with so-called Microdrinks: compact, sugar-free cubes with fruit and plant extracts that dissolve in water while adding flavor and functional ingredients.
Where the brand started as a niche product within the healthy beverage market, it has now grown into an international lifestyle and hydration brand. The product range now includes not only Microdrinks but also:
- Microenergy products with caffeine
- Microlyte variants with electrolytes
- Reusable design bottles
- Water filter systems
In this way, waterdrop® taps into broader consumer trends around health, sustainability, and reducing sugar consumption.
This strategy appears to be successful. The company now achieves annual revenue of approximately €150 million and serves more than 5 million online customers worldwide. Additionally, the products are available in over 20,000 stores, and the brand operates about 50 of its own stores, mainly in Europe and the United States.
Strategic investors bring more than just capital
The new investors provide not only financial strength but also additional expertise and distribution opportunities. Particularly, the participation of Atlantic Grupa is strategically relevant for the further European expansion of waterdrop®.
Atlantic Grupa is already a distribution partner of the brand in parts of Central and Southeast Europe and is now strengthening that collaboration with an investment of tens of millions of euros. According to Lada Tedeschi Fiorio, Group Vice President Corporate Strategy and Investments at Atlantic Grupa, waterdrop® aligns well with changing consumer demand.
"The brand fits within broader trends such as premiumization and the growing demand for functional beverages," says Tedeschi Fiorio. "This investment underscores our confidence in the growth potential of waterdrop® in Europe and beyond."
Investment firm Aspeya also sees potential in the combination of health, wellness, and brand experience. CEO Michael Kunst calls waterdrop® an example of a company that has created a completely new category within the beverage market.
"waterdrop® has built a global community while achieving profitability without losing sight of its mission," said Kunst.
European expansion takes priority
A large portion of the raised capital will be used to further strengthen waterdrop®'s position in Europe. The company focuses primarily on three key areas:
- Further expansion of retail distribution
- Strengthening local teams
- Scaling up direct-to-consumer activities
Additionally, innovation remains an important pillar within the growth strategy. Earlier, waterdrop® announced a collaboration with Ricola for a new line of herb-based hydration products.
This focus on product development should help the brand continue to stand out in a market where consumers are increasingly seeking healthier alternatives to traditional soft drinks and energy drinks.
Top sports as part of the brand strategy
The investment round coincides with the tenth anniversary of waterdrop®. During this period, the brand has heavily invested in visibility within the international sports world.
waterdrop® is a partner of the ATP Tour and the Australian Open, among others. These collaborations aim to contribute to the brand's positioning as a premium hydration partner for active consumers and athletes.
The entry of alpine skier Aleksander Aamodt Kilde as an investor and brand ambassador aligns directly with this. According to waterdrop®, this collaboration fits within a broader strategy where top athletes use the products as part of training, performance, and recovery.
Sustainability remains an important part of the brand
In addition to health, waterdrop® clearly positions itself as a more sustainable alternative within the beverage industry. According to the company, the compact Microdrinks use up to 98 percent less plastic than traditional pre-packaged drinks in 500 ml plastic bottles.
This sustainable positioning is further supported by the sale of reusable drinking bottles and water filter systems, with which the brand aims for a broader change in drinking behavior and consumption patterns.
With the new investment, waterdrop® seems ready for the next phase of growth, where scaling, retail expansion, and brand positioning are central. For the European market, this likely means an even more prominent presence of functional hydration products in both retail and online sales channels.
