Blue Tokai Raises $35M to Expand in Indian Markets
Blue Tokai, a specialty coffee and bakery brand, has raised $35 million in Series C funding. This round was led by Verlinvest, with support from Anicut Capital and A91 Partners. The funds will help Blue Tokai grow in metro cities and enter new tier I and tier II cities in India over the next three years.
Blue Tokai was co-founded by Matt Chitharanjan, Namrata Asthana, and Shivam Shahi. The brand is known for its premium coffee and partnerships with retail stores, hotels, restaurants, and offices. Over the past year, Blue Tokai doubled its store count to 130 outlets. It now plans to expand to over 350 locations in the next three years.
In FY23, Blue Tokai’s revenue grew by 72%, reaching Rs 127.45 crore, up from Rs 74 crore in FY22. However, its losses also increased to Rs 43 crore, compared to Rs 12.3 crore in FY22. The company has not yet filed its FY24 report. Earlier in January 2023, Blue Tokai raised $30 million in Series B funding led by A91 Partners, showing strong investor trust.
Blue Tokai faces competition from other coffee brands like Rage Coffee, Third Wave Coffee Roasters, Slay Coffee, Sleepy Owl, and Seven Beans Co. Among these, Third Wave Coffee had the highest revenue in FY23 but dealt with major layoffs after its own $35 million funding round last year. Rage Coffee recently made news as GRM Overseas acquired a 44% stake in the company, showing how competitive the market is.
With new funding and support from Verlinvest, Blue Tokai is set to grow further in India’s specialty coffee market. The company aims to meet the increasing demand for quality, locally sourced coffee in both urban and suburban areas.