Blue Tokai raises $35M in Series C round led by Verlinvest

Speciality coffee chain Blue Tokai Coffee on Saturday bagged a $35 million investment in a round led by Verlinvest, along with investments from existing investors Anicut Capital and A91 Partners. 

TheCaptable had reported the development earlier this year. According to that report, Blue Tokai is negotiating the deal at a pre-money valuation of Rs 1,300 crore ($160 million), with the post-money valuation expected to be around $180-200 million. 

Blue Tokai, which was founded in 2013, expects this strategic partnership to expand its presence in existing metro markets and further penetrate into new Tier I and II cities in India over the next three years. It will expand to over 350 locations in the next 30-36 months, drive new product innovation, and expand to new channels. 

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“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,” said Matt Chitharanjan, Co-founder and CEO, Blue Tokai. 

It has been adding 5 cafes every month for over a year, and expects this funding to meet its 3-year target of 350+ cafes in India, noted Shivam Shahi, the Co-founder and COO of Blue Tokai Coffee Roasters. 

Founded by Matt Chitharanjan, Namrata Asthana and Shivam Shahi, the coffee chain has doubled its store count in the last year to 130 outlets, offering a range of specialty coffee and artisanal bakery products. Blue Tokai competes with domestic peers like Araku, Subko Coffee, and Third Wave Coffee Roasters, along with international players such as Starbucks and Tim Hortons.