Mumbai-based Startup Subko Coffee Roasters Raises Series B Funding, Eyes Expansion in Speciality Coffee Market
Mumbai-based speciality coffee and cocoa startup Subko Coffee Roasters has announced securing Series B funding of INR 85.10 Cr (approximately $10 Mn) at a valuation of INR 286.92 Cr ($34 Mn), led by investment firm NKSquared, backed by Zerodha cofounders.
In addition to NKSquared’s significant investment, the funding round witnessed 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. Notably, Blume Ventures and Progressive LLP also joined in the latest fundraising endeavor.
According to reports from Entracker, NKSquared has acquired a 25% stake in the coffee chain with an infusion of INR 70 Cr.
Subko Coffee Roasters offers a diverse range of caffeinated beverages, baked goods, and coffee roasters, catering to the discerning tastes of coffee enthusiasts. Notably, celebrities like Gauri Khan and Tiger Shroff have previously invested in the company between June 2022 and December 2023.
Despite the challenges posed by the pandemic, Subko Coffee witnessed remarkable growth in the last fiscal year, with revenues surging by 94% to INR 13.57 Cr in FY23 from INR 7 Cr in the preceding fiscal year. However, the company reported a loss of INR 9.86 Cr during the same period.
In a competitive market landscape, Subko Coffee competes against established players such as Third Wave Coffee, Blue Tokai, Rage Coffee, Slay Coffee, Sleepy Owl, and Seven Beans Co, among others.
The funding announcement arrives amidst notable developments in the speciality coffee sector, with Third Wave Coffee recently raising $35 Mn in its Series C funding round, underscoring investor confidence in the segment.
Meanwhile, Bharat Sethi, founder and CEO of D2C coffee startup Rage Coffee, revealed that the company has surpassed INR 100 Cr in cumulative brand sales since its inception in December 2023, highlighting the robust growth trajectory within the industry.
