Blue Tokai, India’s largest speciality coffee and bakery brand, has raised $35 million in its Series C funding round led by Verlinvest, a global investment firm focused on FMCG, health, consumer technology, and lifestyle sectors. Existing investors include Anicut Capital and A91 Partners, who also participated in this funding round.
This infusion of funds would give steam to the growth plans of Blue Tokai. Over the next three years, besides further growth in existing metropolitan markets, the company is expected to expand into new Tier I and Tier II cities in India. With 130 operational outlets, the company proposes to expand to more than 350 locations over the next 30 to 36 months. This fund would also drive product innovation and new distribution channels.
It said Blue Tokai has witnessed frenetic growth, with revenue from operations surging 72% to Rs 127.45 crore in FY23 from Rs 74 crore in FY22. However, losses for the company have also increased to Rs 43 crore in FY23, nearly 3.5 times the Rs 12.3 crore loss recorded in FY22, according to startup data intelligence platform TheKredible. The company has not filed its annual report for FY24 as yet.
This has been further reinforced by the expansion effort from its co-founder and chief executive officer, Matt Chitharanjan. “With this latest funding, we can bring our passion for coffee to even more people. We will utilise these funds to accelerate our expansion across all channels from our cafes to B2B and B2C platforms,” he said.
It has tie-ups with retail chains, luxury hotels, restaurants, corporates, and co-working spaces. From the time it raised the venture debt, Blue Tokai has over. Strings its store count over two-fold times while entering further growth. It competes with brands such as Rage Coffee, Third Wave Coffee Roasters, Slay Coffee, Sleepy Owl, and Seven Beans Co.
Earlier this year, Blue Tokai had raised $30 million in a Series B funding round spearheaded by A91 Partners. This latest funding will continue to support the company’s mission of providing great coffee experiences and ensuring sustainable growth.