Specialty coffee and bakery brand Blue Tokai announced that it has secured a funding worth of $35 million from Verlinvest. The infusion will help Blue Tokai deepen its presence in existing metro markets and expand into new tier I & II cities in India over the next three years. The Series C funding round also saw participation from existing investors Anicut Capital and A91 Partners.
Founded in 2013 and led by co-founders Matt Chitharanjan, Namrata Asthana and Shivam Shahi, Blue Tokai has more than doubled its store count in the last year to 130 outlets currently. The newly acquired funds will be used to expand to over 350 locations in the next 30-36 months, drive new product innovation, and expand to new channels, the company said.
Arjun Anand, Managing Director & Head of Asia, Verlinvest, said, “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.”
Matt Chitharanjan, Co-founder and CEO, Blue Tokai, said, “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. By introducing innovative coffee product offerings through new producers, we will enable ourselves to reach new consumers with varied offerings and continue delivering consistent coffee experiences. Our focus remains to providing exceptional coffee experiences while fostering sustainable growth.”
Shivam Shahi, the Co-founder and COO of Blue Tokai Coffee Roasters, added, “This investment arrives at a strategic time, enabling us to accelerate our expansion and drive profitability while maintaining our commitment to coffee quality. 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.”
Verlinvest’s investment in Blue Tokai demonstrates the ongoing commitment to the Indian market, which presents strong growth opportunities in the consumer ecosystem. This partnership is also further illustrative of Verlinvest’s focus on supporting high-quality F&B brands globally, including notable investments with Insomnia Cookies and Tony’s Chocolonely.