Zerodha Co-founders’ Firm Leads $10 Mn Investment in Subko Coffee’s Series B Round

• ByStartupStory     |    March 23, 2024

Mumbai-based specialty coffee and cocoa startup Subko Coffee Roasters announced today that it has successfully secured Series B funding of INR 85.10 Cr (approximately $10 Mn) at a valuation of INR 286.92 Cr ($34 Mn).

The funding round was spearheaded by NKSquared, an investment firm backed by Zerodha cofounders, along with participation from Subko’s existing investors. Notable backers include Pallavi and Srinivas Dempo, Jay Mehta, Gauri Khan Family Trust, and John & Priya Abraham, who participated via rights issue. Additionally, Blume Ventures and Progressive LLP also joined in the latest fundraising initiative.

According to Entracker’s report, NKSquared has acquired a 25% stake in the coffee chain with an infusion of INR 70 Cr.

Subko Coffee Roasters, renowned for its exquisite caffeinated beverages, baked delicacies, and premium coffee roasts, has attracted attention from prominent personalities like Gauri Khan and Tiger Shroff, who invested in the company between June 2022 and December 2023.

Despite facing stiff competition from industry players such as Third Wave Coffee, Blue Tokai, Rage Coffee, Slay Coffee, Sleepy Owl, and Seven Beans Co, Subko Coffee has exhibited robust growth in the past fiscal year. Its revenue surged by a staggering 94% to INR 13.57 Cr in FY23 from INR 7 Cr in the previous fiscal year. However, the company reported a loss of INR 9.86 Cr during the same period.

In light of this development, a spokesperson from Subko Coffee stated, “We are thrilled to have received such overwhelming support from our investors, especially from NKSquared and our existing backers. This investment will bolster our efforts to further expand our footprint in the specialty coffee market and continue delivering exceptional experiences to our customers.”

This funding milestone for Subko Coffee comes on the heels of Third Wave Coffee’s successful Series C funding round, where it raised $35 Mn from private equity firm Creaegis and existing investors, including WestBridge Capital and Udaan cofounder Sujeet Kumar.

Meanwhile, Bharat Sethi, founder and CEO of D2C coffee startup Rage Coffee, recently announced that the company has surpassed INR 100 Cr in cumulative brand sales since its inception in December 2023.

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