Sweet Karam Coffee bags $8M from Peak XV Partners

Sweet Karam Coffee, a South Indian food brand, said on Thursday that it raised $8 million in a Series A funding round led by Peak XV Partners, with existing investor Fireside also participating in the round.

The Chennai-headquartered company plans to use the funds for its omnichannel expansion, accelerate new product development, and strengthen its supply chain and brand presence, it said in a statement.

"Quick commerce is bridging distribution like never before, and we’re seeing a beautiful cross-pollination of cultures—our products are now loved not just in the South, but across the country. We’re particularly proud to have led the charge against palm oil from Day 1," said Nalini Parthiban, Co-founder and CEO of Sweet Karam Coffee.

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Founded in 2015, Sweet Karam Coffee serves a range of South Indian sweets, snacks, in-house filter coffee blends, and ready-to-eat meal mixes made without palm oil and preservatives.

At present, the brand has a presence in 32 countries and is available on over 2,500 quick commerce dark stores. It has grown 4X in revenue over the last 12 months and has a target of growing another 2.5X in the next 12 months.

To aid its expansion efforts, the company also appointed former Unilever executive Nandhitha Indermohan as its Chief Operating Officer.

"The South Indian snacks and sweets market, at over Rs 25,000 crore, is large, fast-growing, and undergoing a significant transformation. The shift from unorganized to organised players, rising demand for better-for-you products, and the rapid expansion of modern distribution channels present a powerful opportunity for brands like Sweet Karam Coffee," said Abishek Mohan from Peak XV Partners.

(The copy has been updated to reflect the correct name of the existing investor.)