Coffee Startup Blue Tokai Bags 292 Cr Funding From Verlinvest, Others

Blue Tokai Coffee Roasters, a specialty coffee brand, has raised $35 million (approximately INR 293 crore) in a Series C funding round led by Belgian investor Verlinvest.

Anicut Capital and A91 Partners, both existing investors, also participated in the round. Following the fundraising round, the startup’s valuation is estimated to be INR 1,500 crore (about $179 million).

In a statement, VerlInvest stated that the money will be used to increase Blue Tokai’s presence to over 350 sites over the next 30-36 months.

“We will use these funds to expand across all channels, including our cafes, B2B, and B2C platforms…” “Our focus remains on providing exceptional coffee experiences while fostering long-term growth,” stated Blue Tokai cofounder and CEO Matt Chitharanjan.

Meanwhile, cofounder and COO Shivam Shahi stated that the money will allow the business to accelerate its expansion goals and “drive profitability” while preserving product quality. Shahi claimed that Blue Tokai has been witnessing a major rise in demand, and that the firm has been “steadily” adding five cafés to its portfolio every month for more than a year.

Blue Tokai intends to use the new cash to strengthen its presence in existing metro cities and expand its reach to new Tier I and II cities over the next three years. The funds will also be used to promote “product innovation” and expand into new channels.

Related: Rajat Luthra, Previously the CEO of KFC India Becomes the CEO at Third Wave Coffee

Blue Tokai, founded in 2013 by Chitharanjan, Shahi, and Namrata Asthana, has four roasteries and more than 80 physical stores across Delhi NCR, Mumbai, Bengaluru, and Hyderabad, among other cities. It also has a location in Tokyo, Japan.

Blue Tokai has B2B collaborations with various retail stores, luxury hotels, restaurants, corporations, and coworking spaces, among others.

The startup competes with both established and emerging brands, like Café Coffee Day, Third Wave Coffee, and worldwide powerhouse Starbucks.

The new funding comes months after former Reckitt Benckiser executive Rakesh Kapoor’s fund 12 Flags Group purchased a stake in the coffee chain for an unknown sum.

Last year, Deepika Padukone contributed to Blue Tokai’s $30 million Series B fundraising round, which was led by A91 Partners.

This comes at a time when investors are renewing their interest in food and beverage (F&B) businesses as the country’s disposable income rises.

Subko Coffee Roasters secured $10 million in Series B fundraising in March of this year, led by Zerodha cofounder Nikhil Kamath. Another specialized coffee startup, abCoffee, raised $3.4 million in a round headed by Nexus Venture Partners in March.

Meanwhile, Bengaluru-based brand Third Wave Coffee raised $35 million in a Series C fundraising round led by private equity (PE) firm Creaegis at a valuation of $150 million in September of last year.