Blue Tokai, a leading speciality coffee and bakery brand, has successfully raised $35 million in its Series C funding round, led by global investment platform Verlinvest. The round also saw participation from existing investors, Anicut Capital and A91 Partners.
This latest infusion of capital will fuel Blue Tokai’s ambitious expansion plans, enabling the brand to deepen its presence in existing metro markets and venture into new tier I and tier II cities across India over the next three years. The company announced these developments in a recent press release.
In January 2023, Blue Tokai secured $30 million in its Series B round, which A91 Partners spearheaded. Co-founders Matt Chitharanjan, Namrata Asthana, and Shivam Shahi have been instrumental in driving the company’s growth, forming partnerships with various retail outlets, luxury hotels, restaurants, top corporations, and co-working spaces.
Over the past 12 months, Blue Tokai has more than doubled its store count, reaching 130 outlets. The new funding will be used to further accelerate this growth, with plans to expand to over 350 locations within the next 30 to 36 months.
Blue Tokai faces competition from other prominent coffee brands in the Indian market, including Rage Coffee, Third Wave Coffee Roasters, Slay Coffee, Sleepy Owl, and Seven Beans Co. Among these, Third Wave Coffee emerged as the largest venture-funded brand in terms of revenue for FY23. However, the brand experienced significant layoffs following a $35 million fundraising round in September 2023, and in March, CEO Sushant Goel was replaced by Rajat Luthra, formerly of KFC.
In a related development, GRM Overseas recently acquired a 44% equity stake in Rage Coffee through a combination of primary infusion and secondary buyouts, signalling continued consolidation and competition within the speciality coffee market in India.
