STARTUP-STORIES

Zerodha Founders and Others Invest $10 Million in Subko Coffee, NKSquared Leads Funding Round

SUMMARY

Subko Coffee Roasters secures $10 million (INR 85.10 Cr) in Series B funding.

Investment led by NKSquared (Zerodha co-founders) with participation from existing investors including celebrities.

Company witnesses 94% revenue growth in FY23 but reports a loss.

Subko Coffee competes in a crowded yet promising Indian coffee market.

Funding empowers Subko Coffee to focus on expansion and brand building.

Mumbai's homegrown coffee brand, Subko Coffee Roasters, has secured a piping hot $10 million (INR 85.10 Cr) in Series B funding, signaling a strong brew for the company's future. This funding round comes at a time when the Indian coffee market is witnessing a significant surge, with consumers developing a taste for premium coffee experiences.

Investor Backing and Growth Trajectory

The funding round was spearheaded by NKSquared, an investment firm backed by the founders of Zerodha, India's leading online stockbroker. Existing investors, including celebrities like Gauri Khan and Tiger Shroff, also participated through a rights issue. This vote of confidence from established names in the business world highlights Subko Coffee's potential.

The company has witnessed impressive growth in recent times. Revenue jumped a staggering 94% in the last fiscal year, reaching INR 13.57 Cr (approx. $1.6 million) from INR 7 Cr (approx. $830,000) the previous year. However, it's important to note that Subko Coffee is still in its investment phase, and the company reported a loss of INR 9.86 Cr (approx. $1.1 million) during the same period.

A Competitive Coffee Landscape

Subko Coffee isn't the only player brewing up a storm in the Indian coffee market. The company faces stiff competition from established names like Third Wave Coffee, Blue Tokai, Seven Beans Co, and new age challenger brands like Rage Coffee and Slay Coffee. Notably, Third Wave Coffee recently secured a significant $35 million investment, highlighting the investor appetite for the Indian coffee space.

Brewing for the Future

Subko Coffee's successful funding round reflects the growing consumer demand for specialty coffee experiences in India. With fresh capital, the company can focus on expanding its cafe network, product offerings, and brand awareness. The battle for coffee supremacy in India is heating up, and Subko Coffee's ability to innovate and cater to evolving customer preferences will be crucial for its long-term success.