India's Blue Tokai Coffee Roasters raises $25 million to enter Dubai, expand in Japan

Blue Tokai Coffee Roasters, a homegrown specialty coffee chain, has raised $25 million (about Rs 220 crore) in a bridge funding round from existing investors A91 Partners, Anicut Capital, Verlinvest, and 12 Flags.

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The new infusion comes a year after its $35 million Series C funding round, which was led by Verlinvest.

The company said it would deploy the fresh capital to expand its retail footprint, strengthen back-end infrastructure, enter Dubai (UAE), and expand in Japan. In India, Blue Tokai plans to open more cafés while expanding its roasteries and bakery facilities in Bengaluru and Gurugram.

Co-founder and COO Shivam Shahi said the startup had revised its targets amid stronger-than-expected consumer demand.

“We are on track for our initial plan of Rs 1,000 crore in revenue and Rs 100 crore EBITDA by 2027, but with recent market response, we have revised our plans to accelerate growth and have started thinking about 800 + stores and 2000 cr revenue in next four years,” he said.

Founded in 2013 by Shahi, Matt Chitharanjan, and Namrata Asthana, Blue Tokai operates four roasteries and more than 150 cafés across Delhi NCR, Mumbai, Bengaluru, Hyderabad, and other cities.

Including the latest round, the company has raised roughly $97 million to $105 million in total funding. A91 Partners is currently its largest external stakeholder, holding a 22.77% stake, followed by Verlinvest, according to the reports.

The company has grown more than fivefold in the past four years. Revenue climbed from Rs 41 crore in FY21 to Rs 75 crore in FY22, Rs 127 crore in FY23, and Rs 216 crore in FY24. However, its net loss widened 46% to Rs 62.9 crore in FY24 as operating costs rose amid an aggressive expansion drive.

Matt, Co-founder & CEO, said, “We believe in not just building a brand but creating a legacy that elevates India’s coffee culture on the world stage. This new round of funding is a testament to our vision of making India a true coffee destination worldwide. Our journey forward is about inspiring a cultural shift, fostering sustainability, and creating opportunities for millions of coffee lovers and entrepreneurs.”