Specialty coffee brand Blue Tokai raises $35 million for further expansion

Blue Tokai, one of India's leading specialty coffee and bakery brands, has raised $35 million (or approximately Rs 293 crore) in a Series C funding round.

Verlinvest, a global, family-backed evergreen investment firm, led the round, with participation from existing investors Anicut Capital and A91 Partners.

Verlinvest, which has offices in Brussels, London, New York, Singapore, and Mumbai, focuses on FMCG, health, consumer technology, and lifestyle categories.

Focusing on further expansion

Blue Tokai plans to use the raised capital to deepen its presence in existing metro markets and expand into new Tier I & II cities in India over the next three years.

The company currently operates 130 outlets and plans to expand to over 350 locations, drive new product innovation, and explore new distribution channels.

“With this latest funding, we have the opportunity to bring our passion for coffee to even more people.  We will utilize these funds to accelerate our expansion across all channels – from our own cafes to B2B and B2C platforms," said Mr Matt Chitharanjan, Co-founder and CEO of Blue Tokai.

Chitharanjan said that the company will introduce innovative coffee products through new producers to reach more customers with a wider range of offerings.

"Our focus remains to provding exceptional coffee experiences while fostering sustainable growth," he added.

Who are the founders?

Founded in 2013 by Matt Chitharanjan, Namrata Asthana, and Shivam Shahi, Blue Tokai currently delivers a range of specialty coffee products and artisanal bakery goods. 

"We are thrilled to partner with Blue Tokai in their mission to bring specialty coffee to millions across India. Matt, Namrata, and Shivam have brilliantly crafted a cult brand known for its exceptional products and customer experience. Together, we are committed to elevating Blue Tokai to new heights, creating India’s leading coffee chain and delighting consumers with unparalleled quality and service," said Mr Arjun Anand, Managing Director & Head of Asia, Verlinvest.

"We are experiencing a significant surge in demand for quality coffee and bakery products, and this funding round further validates our hypothesis regarding market growth. We have been steadily adding five cafes each month for over a year, and this capital equips us to meet our three-year target of 350+ cafes in India," Mr Shivam Shahi, the Co-founder and COO of Blue Tokai, said.