South Indian food brand Sweet Karam Coffee raises $8 million in a Series A round

Sweet Karam Coffee, a Chennai-based South Indian food brand known for its clean-label sweets and snacks, has raised $8 million in a Series A funding round led by Peak XV Partners, with participation from existing investor Fireside Ventures. 

The funding marks a significant step forward for the startup as it scales distribution, diversifies its product line, and builds technology-driven supply chain capabilities.

Founded in 2015 by the husband-wife duo Nalini Parthiban and Anand Bharadwaj, Sweet Karam Coffee—often abbreviated as SKC—has carved a niche for itself in a growing segment of regional, preservative-free packaged foods.

The startup's offerings range from banana chips and Madras mixture to traditional filter coffee and fusion snacks, all marketed as free of palm oil, preservatives, and maida.

“Quick commerce is bridging distribution like never before, and we're seeing a beautiful cross-pollination of cultures—our products are now loved not just in the South, but across the country,” said Nalini Parthiban, co-founder and CEO.

Scaling through quick commerce and global distribution

Over the past year, SKC has rapidly scaled its presence in the quick commerce segment, reaching more than 2,500 dark stores across India. According to Parthiban, the channel has grown threefold in value in just 12 months.

The startup also ships its products to 32 countries, reflecting the increasing global appetite for regional Indian flavours.

"Everything we create is something my Janaki Paati would make at home—products I'm comfortable giving my own daughter," she added, emphasizing the brand's commitment to traditional preparation and homegrown values.

New leadership and operational expansion

As part of its expansion strategy, SKC has appointed Nandhitha Indermohan as its Chief Operating Officer. Indermohan, a former Unilever executive, brings over 15 years of experience in supply chain and operations.

Her appointment is expected to support SKC’s push into omnichannel retail and improve execution as the company enters its next phase of growth. The brand had previously raised $1.5 million in October 2023 from Fireside Ventures to bolster its offline expansion.

Financial performance

SKC reported an operating revenue of Rs 11.2 crore for FY24 and expects a 4.5x increase in FY25. Over the past year, the startup claims to have recorded 4x revenue growth and projects a further 2.5X increase in the coming 12 months.

"The South Indian snacks and sweets market, at over Rs 25,000 crore, is large, fast-growing, and undergoing a significant transformation," said Abishek Mohan, Principal at Peak XV.

"The shift from unorganised to organised players, rising demand for better-for-you products, and the rapid expansion of modern distribution channels present a powerful opportunity for brands like Sweet Karam Coffee. Nalini and Anand are deeply authentic, mission-driven founders, and we're thrilled to be a part of their journey."