Specialty coffee and bakery brand Blue Tokai raised $35 M Series C funding from Verlinvest
Global investment marketplace Verlinvest has spearheaded a $35 million fundraising for Blue Tokai, a specialty coffee and bakery brand. A91 Partners and Anicut Capital, two previous investors, also participated in the Series C financing.
According to a press release from the company, Blue Tokai will be able to expand into new tier I and tier II cities in India over the next three years and strengthen its presence in already-established metro markets thanks to this strategic partnership.
A91 Partners led Blue Tokai’s $30 million Series B funding round in January 2023.
Under the direction of its co-founders, Matt Chitharanjan, Namrata Asthana, and Shivam Shahi, Blue Tokai has collaborated with a number of high-end retailers, co-working spaces, fine dining establishments, and hotels.
The company says it has more than doubled its number of stores to 130 in the last 12 months. In the ensuing three to six months, the funds will also be utilized for expansion to over 350 locations.
From Rs 74 crore in FY22 to Rs 127.45 crore in FY23, Blue Tokai’s operating revenue increased by 72%. As per the media, the company’s losses escalated by almost 3.5 times to Rs 43 crore in FY23 as opposed to Rs 12.3 crore in FY22. The business has not yet submitted its FY24 annual report.
Among the competitors are Seven Beans Co., Sleepy Owl, Slay Coffee, Rage Coffee, and Third Wave Coffee Roasters. Third Wave Coffee was the biggest brand in terms of revenue among venture-funded startups in FY23. But soon after raising $35 million in September of last year, the company also had to let go of over 100 workers. Sushant Goel, the CEO of Third Wave Coffee, was replaced in March of this year by KFC’s Rajat Luthra.
Through a combination of primary infusion and secondary buyouts, GRM Overseas was able to obtain a 44% equity stake in Rage Coffee earlier this week.
