Homegrown coffee brand Sleepy Owl raises $6.5 mn 

Delhi-based direct-to-consumer (D2C) coffee brand, Sleepy Owl, has raised $6.5 million in a Series A funding, which was led by an existing investor, Rukam Capital, with participation from DSG Consumer Partners. Dexter Capital was the exclusive financial advisor on this deal. The announcement comes at a time when the D2C market in India is seeing a peaked interest from investors/funds to cater to the growing consumer base.

Sleepy Owl was founded in 2016 and comprises a product portfolio which includes Cold Brew Packs, Hot Brew Bags, Ready-To-Drink Cold Brew Bottles, Ground Coffee, Brew Box and a range of merchandise. The company was co-founded by Ajai Thandi, Arman Sood, and Ashwajeet Singh, who gave up their corporate jobs to pursue their shared dream of building their venture. The trio was also featured in the coveted ‘Forbes 30 under 30 India’ for the year 2020.

The startup said that the pandemic did cast an impact on the business earlier, however, the firm has been able to ride the wave and is slated to close with an annual revenue run of Rs 60 crore by March 2022. Sleepy Owl aims to solidify their core team, build a robust distribution network across India for increased demand of their brews, and firm up its marketing initiatives.

“The pandemic played the role of a catapult for us. It forced us to take a few steps back to aim at the target. We were agile and quick on problem-solving, and were able to get back on track with higher numbers. At Sleepy Owl, we are elated on receiving the latest round of funding as it reflects investors’ faith in our business model and growth potential in the Indian market. We plan to utilise the funds to go deeper into our existing retail markets across India and add as we grow,” Sleepy Owl co-founder Ajai Thandi said.

“The company has demonstrated a strong growth pattern since its launch in 2016, despite the pandemic. With this investment, we are confident that Sleepy Owl will get the required impetus to further scale up its business and expand operations,” said Archana Jahagirdar, Rukam Capital’s Managing Partner. Rukam Capital invests in early-stage consumer products and services companies that have exceptional growth prospects and exhibit the potential for substantial returns.

Sleepy Owl Coffee has a presence in the form of over 1,700  outlets in Delhi-NCR, Mumbai, Pune, Indore, Bhopal, Chandigarh, and Jammu among other cities, and has catered to over 60,000 customers. Their products are also available on the company’s website, Amazon India and BigBasket.

“As it grows, Sleepy Owl is working towards making its products sustainable, reducing plastics and using paper and aluminium. They have stayed true to their mission to introduce more Indians to coffee,” Deepak I Shahdadpuri, Managing Director DSG Consumer Partners, said.

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