Coffee startup Blue Tokai in talks for new raise at over $180 mln valuation, ET Retail

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New Delhi: Specialty coffee chain Blue Tokai is in advanced talks to close a new fundraise at a valuation between USD 180 – 200 million, people aware of the development told ETRetail.

While the size of the fundraising remains undisclosed, the new round will more than double the valuation of the company. Last year in January, Blue Tokai raised USD 30 million in a Series B round at a reported valuation of around Rs 650 crore.

Blue Tokai did not respond to ETRetail’s queries.

A report by The Arc stated that the company is raising about USD 40 million.

Earlier this week, 12 Flags Group, the consumer fund set up by Rakesh Kapoor, former global chief of Reckitt Benckiser announced its investment in Blue Tokai Coffee Roasters via a LinkedIn post. The company did not disclose the size of the investment.

In addition to 12 Flags Group, the new fundraise for Blue Tokai might see participation from its existing investors. Whether a new investor will come on board is yet to be known.

The company counts A91 Partners, Anicut Capital, 8i Ventures, DSP Blackrock, Negen Capital, Mauryan Capital, and White Whale Ventures as its investors. Bollywood actor Deepika Padukone last year invested an undisclosed amount in the startup.

Blue Tokai’s FY23 revenue stood at Rs 129 crore. The company reported a loss of Rs 42 crore during the said period. The coffee chain runs over 100 outlets across Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Kolkata, Chandigarh, Mohali, and Pune.

The coffee market has been seeing active interest from investors. Last month, Subko, a specialty coffee roaster and craft bakehouse raised USD 10 million from Zerodha cofounder Nikhil Kamath, Blume Founders Fund, The Gauri Khan Family Trust and actor John Abraham.

Food service company abCoffee also secured USD 3.4 million in a series A round led by Nexus Venture Partners and Tanglin Venture Partners.

Last year, another key player in the specialty coffee space, Bengaluru-based Third Wave Coffee raised USD 35 million from private equity firm Creaegis and existing investors – WestBridge Capital and Udaan cofounder Sujeet Kumar. The round reportedly valued the firm at around USD 150 million.