MUMBAI : Blue Tokai Coffee Roasters has initiated preliminary discussions with private equity firms including TPG, Temasek and ChrysCapital to raise at least $100 million, according to two people familiar with the matter.
MUMBAI : Blue Tokai Coffee Roasters has initiated preliminary discussions with private equity firms including TPG, Temasek and ChrysCapital to raise at least $100 million, according to two people familiar with the matter.
"It is still early days, but feelers have been sent to the top private equity funds," one of the people cited above said. The proposed round is expected to include both primary and secondary share sales, according to the second person.
"It is still early days, but feelers have been sent to the top private equity funds," one of the people cited above said. The proposed round is expected to include both primary and secondary share sales, according to the second person.
Valuation discovery will happen as the conversations progress, the person added.
Both people spoke on the condition of anonymity.
If the fundraising materializes, it would rank among Blue Tokai's largest capital raises and one of the biggest funding rounds in India's organised café and quick-service beverage market.
According to Redseer, India's food services market, valued at $80 billion in 2024, is expected to grow at a compound annual growth rate (CAGR) of 10-11% through 2030, driven largely by the organised segment.
TPG and Temasek declined to comment, while ChrysCapital and Blue Tokai did not respond to Mint's requests for comment till the time of publication.
Fundraising push
The latest discussions come just months after Blue Tokai raised ₹175 crore in an extension of its Series D round in May. The funding was led by Anicut Capital, with participation from A91 Emerging Fund, Verlinvest, 12 Flags and other existing investors.
Founded in 2013 by Matt Chitharanjan, Namrata Asthana and Shivam Shahi, Blue Tokai was built around sourcing, roasting and brewing premium Indian coffee. The company set out to make specialty coffee from heritage Indian estates more accessible through its cafés and retail products.
Since inception, Blue Tokai has raised nearly $130 million from investors including A91 Partners, White Whale Ventures, Ka Enterprises, Snow Leopard Technology Ventures and 8i Ventures.
Coffee boom
Blue Tokai's fundraising comes amid rising investor interest in India's premium café and specialty coffee market.
Recent deals include Third Wave Coffee's ongoing $80-100 million fundraising led by existing investors WestBridge Capital and Creaegis, while Chaayos is looking to raise $50-70 million, Mint reported earlier.
Redseer estimates India's coffee market, valued at about $1.2 billion in 2023, will grow at a CAGR of 15-20% to reach $2.6-3.2 billion over the next two years, fuelled by changing consumer preferences and rising organised dining and delivery-led consumption.
Blue Tokai competes with domestic and international brands including Third Wave Coffee, Subko and Starbucks in a market that has become increasingly competitive following the entry of global chains such as Tim Hortons and Pret A Manger.
The company is betting on India's growing appetite for specialty coffee as organized café chains expand beyond metros into smaller cities.
Financial momentum
Muhuavra Enterprises Pvt. Ltd., which operates the Blue Tokai brand, reported consolidated revenue of ₹332.7 crore in FY25, up from ₹221.13 crore a year earlier.
The company also narrowed its consolidated loss to ₹50.19 crore from ₹63 crore in FY24, according to filings with the ministry of corporate affairs sourced from Tofler.