Blue Tokai raises $30 million in Series B funding led by A91 Partners

Specialty coffee start-up Blue Tokai has raised $30 million in Series B funding led by A91 Partners. The list of participants in the round included White Whale Ventures, and existing investors Grand Anicut Fund and 8i Ventures.

According to the company, this fundraise marks the largest investment round in the Indian specialty coffee industry so far. In August 2021, it had raised $2 million in a pre-Series B round led by Anicut Angel Fund.

Vikram Chachra, Founding Partner, 8i Ventures said, “Blue Tokai has been at the forefront of the specialty coffee movement in India. As early investors, we are thrilled to continue our partnership with Blue Tokai as they continue to revolutionize the Indian coffee industry."

"This $30 million raise is a testament to the strength of their brand and the quality of their products. We believe that Blue Tokai has enormous potential and look forward to supporting their journey as they continue to innovate and expand on their path to an IPO," Vikram added.

The coffee brand stated that it is clocking a revenue run rate of Rs 150 crore for the ongoing fiscal year and eyes profitability by next year.

As per the annual financial statement with the RoC, Blue Tokai's revenue from operations surged 80.6 per cent to Rs 74 crore in FY22 from Rs 40.96 crore in FY21. Its losses also jumped 72.2 per cent to Rs 12.33 crore in FY22 against Rs 7.16 crore in FY21.

The company saw a flat growth in FY21 as it registered Rs 40.2 crore in revenue in FY20 with Rs 9.47 crore loss.

The Gurugram-based company said that it plans to add 200 new stores over the next three years, taking the overall count to over 250 cafes.  As per the company, it will also invest in its B2B arm and plans to introduce vending machine-based offerings.

At present, Blue Tokai has 4 roasteries and over 60 physical outlets including Delhi (NCR), Mumbai, Bengaluru, Kolkata, Chandigarh, and Pune, as well as international operations in Japan.

Also read:  IPO-bound OYO to file and submit updated DRHP to SEBI in February

Also read: Infosys Foundation announces awards for social entrepreneurs; to commit up to Rs 50 lakh per winner