Mumbai-based Subko Coffee Roasters, a prominent player in India’s specialty coffee and chocolate industry, has raised around $10 million in Series B funding from NKSquared for positioning itself as a competitive player in the market.
NKSquared, an investment business founded by Zerodha cofounders who have invested in other startups too, values Subko at INR 286.92 crore ($34 million). The infusion of capital marks a significant milestone for Subko Coffee Roasters as it continues to expand its market presence and offerings.
Subko Coffee Roasters, founded by Rahul Reddy, embraces a unique character. The name “Subko” is derived from the Hindustani word “Sabko,” meaning “for everyone” or “for all.” This choice reflects the company’s pride in its Indian heritage and commitment to catering to diverse tastes and preferences.
Rahul Reddy, with his diverse background encompassing experiences as a Starbucks barista in California, a professional in software sales and marketing in New York, and expertise in geopolitical risk consulting, brings a rich skill set to the Indian coffee sector.
Financial Performance and Competitive Landscape
The Series B fundraising round saw active participation from Subko’s existing investors, including Pallavi and Srinivas Dempo, Jay Mehta, Gauri Khan Family Trust, and John & Priya Abraham, through a rights issue. Additionally, Blume Ventures which recently invested in Ultrahuman and Progressive LLP joined as strategic investors, underscoring the market’s confidence in Subko’s growth trajectory and business model.
Subko Coffee Roasters is known for its broad offerings, including caffeinated beverages, baked products, and coffee roasters. The company has attracted investments from prominent celebrities such as Gauri Khan and Tiger Shroff, highlighting its appeal and market recognition.
Subko Coffee Roasters experienced robust growth in the previous fiscal year, with revenue surging by 94 percent to INR 13.57 crore in FY23. Despite this impressive revenue growth, the company reported a loss of INR 9.86 crore during the same period.
Subko competes in a dynamic market alongside players like Third Wave Coffee, Blue Tokai, Rage Coffee, Slay Coffee, Sleepy Owl, and Seven Beans Company, showcasing the vibrancy and competition within India’s specialty coffee industry.
Industry Trends and Growth Trajectory
The Series B funding for Subko Coffee Roasters is pivotal, with the broader industry witnessing significant investments and developments. Third Wave Coffee’s recent Series C funding of $35 million and Rage Coffee’s milestone achievement of surpassing INR 100 crore in cumulative brand sales underscore the growth potential and investor interest in the sector.
Subko Coffee Roasters’ successful fundraising round, led by NKSquared and supported by a solid investor base, positions the company for continued expansion, innovation, and market leadership within India’s specialty coffee and chocolate segment. As the company navigates competitive landscapes and capitalizes on emerging trends, it remains a key player in shaping the future of India’s vibrant coffee industry.
Stay ahead of the curve and follow IndiaTechDesk onĀ Facebook,Ā TwitterĀ andĀ LinkedinĀ for in-depth news of market trends, funding updates, and regulatory changes affecting startups in India.
Read More:
- Doceree Secures $35 Million in Series B Funding for Global Expansion
- Indian Private Equity Firm Creaegis Closes Maiden Fund at $425 Million to Back Startups
- Kale Logistics Secures $30 Million in Series B Funding Led by Creaegis
- Chandrayaan 3 Inspires Surge in Indian Space Sector as SatSure Secures $15 Million Investment
- Wiom Raises $17 Million in Series A Round to Democratize Affordable Internet Access in India
