Cobra Beer Ltd, one of the fastest growing beer companies in the UK, had announced that it has successfully raised £27.5 million to fund the next phase of its development. Cobra's strategy for the next few years focuses on accelerating business growth in the UK and India, and on developing its South African and export activities, says a Cobra press release issued in New Delhi.

Out of the total raised, £13 million has been used by Cobra to redeem its convertible cumulative redeemable preference shares, which were due for redemption in 2007.

The remaining funds, after deducting £1.5 million for costs, will be used to finance Cobra's expansion plans in the UK and India, to raise financing for marketing and distribution in both countries as well as working capital, and to expand its draught beer capacity in the UK. Additional funding will go to international markets, including South Africa, and exports. Cobra's Founder and Chief Executive, Karan Bilimoria, said: "Our mission since day one has been to brew the finest ever Indian beer and make it a global brand. In the most competitive beer market in the world, our passion and entrepreneurial spirit have driven us to achieve success against all odds. Now we have funds we need for our medium-term development and our ambitious plans to build on the current success of Cobra Beer to reach our goal."

Cobra's COO & Finance Director, Dynshaw Italia, added: "Since Karan Bilimoria started Cobra Beer in 1989 with £20,000 of student debt, Cobra Beer has always strived to raise capital through a number of innovative ways. As the largest sum of money that Cobra Beer has raised to date, these funds will help strengthen the Cobra brand within the UK and enable the company to establish a strong foothold in India and export markets."

The company anticipates substantial growth in India's beer market over the next 10 years. Cobra is brewed for the local market under licence by Mount Shivalik.

New products, launched during 2005, were Cobra 0.0%, an alcohol-free beer; Cobra Lower Cal, a lower-calorie beer with half the calories of a regular Cobra; and King Cobra, the world's first double-fermented strong lager (8% ABV) that is sold in Champagne-style bottles.

In the UK, Cobra is stocked in 90% of the 6,000 Indian restaurants that are licensed to sell alcohol. The company now plans to increase its share of this market by expanding sales of draught beer, particularly in the North of England. Cobra is exported to 40 countries. It is exported to the US under the Krait brand.