The company plans to utilise the funds to go deeper into its existing retail markets across India
Delhi-based D2C company Sleepy Owl has raised growth capital of $6.5 million in Series A funding. The latest round was led by existing investor Rukam Capital, followed by DSG Consumer Partners with Dexter Capital being the exclusive financial advisor on this deal. With the fresh funding, the company aims to solidify their core team, build a robust distribution network across India for increased demWith the fresh funding, the company aims to solidify its core team, build a distribution network across India for increased demand of their brews, and firm up its marketing initiatives.
“The company has demonstrated a strong growth pattern since its launch in 2016, despite the pandemic. With this investment, we are confident that Sleepy Owl will get the required impetus to further scale up its business and expand operations. The brand has a potential of being amongst the fastest growing formats within the coffee business category,” Archana Jahagirdar, managing partner, Rukam Capital, said.
Founded in 2016, Sleepy Owl has a varied product portfolio that includes Cold Brew Packs, Hot Brew Bags, Ready-To-Drink Cold Brew Bottles, Ground Coffee, Brew Box and a range of merchandise. The company was co-founded by Ajai Thandi, Arman Sood, and Ashwajeet Singh. As per the company, the pandemic put a spoke in their growth plans. Sleepy Owl claims to post an ARR of Rs 60 crore by March 2022.
“The pandemic played the role of a catapult for us. It forced us to take a few steps back to aim at the target. We were agile and quick on problem-solving, and were able to get back on track with higher numbers. At Sleepy Owl, we are elated on receiving the latest round of funding as it reflects investors’ faith in our business model and growth potential in the Indian market. We plan to utilise the funds to go deeper into our existing retail markets across India and add as we grow,” Ajai Thandi, co-founder, Sleepy Owl, said.
For Deepak I Shahdadpuri, managing director, DSG Consumer Partners, Sleepy Owl is working towards making its products sustainable, reducing plastics and using paper and aluminium while staying true to their mission to introduce more Indians to coffee.
Sleepy Owl Coffee has a presence in over 1700 outlets in Delhi NCR, Mumbai, Pune, Indore, Bhopal, Chandigarh, and Jammu amongst other cities, and has catered to more than 60,000 customers. Their products are also available on the company’s website, Amazon India and BigBasket.