Blue Tokai Coffee Roasters Raises USD 25 Million And Expected To Expand In Dubai And Japan
The coffee chain is expected to deploy the $25 million fund to expand its retail operations, strengthen its back-end infrastructure, and enter international markets like Dubai and Japan and domestic markets like Bengaluru and Gurugram.
Homegrown speciality coffee chain, Blue Tokai Coffee Roasters has raised USD 25 million (approximately INR 220 crore) in a bridge funding round (a short-term capital injection to help a startup sustain operations and achieve milestones between two larger, priced funding rounds) from existing backers including A91 partners, Anicut, Verlinvest, and 12 Flags.
According to a statement issued by the coffee chain, it plans to deploy this capital in expanding its retail operations, strengthening its back-end infrastructure, and entering international markets like Dubai and Japan. It also wants to scale up the number of stores they have in India, particularly in cities like Bengaluru and Gurugram.
This new infusion of capital comes a year after the Verlinest-led $35 million Series C funding round, which is a significant investment stage for a company where investors such as private equity firms and investment banks provide substantial capital to a mature but growing company to scale up its operations, enter new markets, develop new products, or acquire other companies.
Adding to the statement, COO, Blue Tokai Coffee Roasters, Shivam Shahi also mentioned that as a response to stronger than expected consumer demand, the company is now looking at 800+ stores and a revenue of INR 2,000 crores by 2027.
About Blue Tokai
Blue Tokai Coffee Roasters was founded in 2013 by Matt Chiharanjan and Namrata Asthana. The first physical outlet came up in one of Delhi’s smallest urban villages called Said-ul-ajaib. Today, Blue Tokai operates four roasteries and over 150 outlets across Delhi NCR, Mumbai, Bengaluru, Hyderabad, among other cities.
In the last four years, the company has grown its revenue from INR 41 crore in FY21 to INR 216 crore in FY 24. When it comes to funding, including the latest round, the company has raised roughly $97 million to $105 million with A91 Partners holding the largest external stake in it.
It is also a time when increasing popularity of India’s cafe culture and evolving preferences of consumers is leading to an expansion in the cafe market. As a result, investors are actively and aggressively backing coffee chains.
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