Sweet Karam Coffee Raises $8 Mn in Series A Round Led by Peak XV Partners to Expand Product Portfolio and Global Footprint

• ByStartupStory     |    April 4, 2025

Chennai-based D2C snacking brand Sweet Karam Coffee has secured $8 million in its Series A funding round, led by Peak XV Partners, with existing investor Fireside Ventures also participating. The fresh capital will be used to scale operations, diversify the product range, and broaden the startup’s geographical footprint.

Founded in 2015 by Anand Bharadwaj, Nalini Parthiban, Srivatsan Sundararaman, and Veera Raghavan, Sweet Karam Coffee has grown into a household name with its range of traditional South Indian sweets, snacks, and filter coffee. Staying true to its roots, the brand emphasizes clean snacking by offering preservative-free and palm oil-free products, alongside condiments and ghee.

Sweet Karam Coffee distributes its products via its own website, major ecommerce marketplaces, and quick commerce platforms. The company proudly claims a global presence, serving customers in over 32 countries.

As part of its growth strategy, the startup recently onboarded Nandhitha Indermohan, a former Unilever executive, as Chief Operating Officer. With over 15 years of experience in supply chain and operations, her appointment is expected to further strengthen the brand’s backend and streamline its nationwide and international expansion efforts.

The funding round comes nearly two years after Sweet Karam Coffee raised $1.5 million from Fireside Ventures in an earlier round. The latest infusion signals strong investor confidence in the brand’s business model and future trajectory.

On the financial front, Sweet Karam Coffee reported a 558% surge in operating revenue, climbing from INR 1.7 Cr in FY23 to INR 11.2 Cr in FY24. However, the company also saw a 10X increase in losses, from INR 77 Lakh to INR 7.58 Cr during the same period. Despite this, the brand has continued to build on its growth momentum in FY25, registering a 4.5X revenue increase, while also improving operational efficiency and significantly reducing losses.

A Booming D2C Snacking Ecosystem

The D2C snacking segment in India is undergoing a transformation, especially with consumers seeking healthier and preservative-free alternatives post-Covid. Sweet Karam Coffee is among the many homegrown brands capitalizing on this trend.

The funding landscape reflects this momentum, with competing brands like Beyond Snack raising $8.3 million in Series A from 12 Flags Group in January 2025. Similarly, The Whole Truth Food raised $15 million from Sofina Ventures, while Super You, backed by actor Ranveer Singh, secured funding from Zerodha’s Kamath Brothers.

According to industry estimates, India’s D2C market is expected to become a $300 billion opportunity by 2030, powered by rising disposable incomes, urbanization, and increased internet penetration.

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