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Subko Coffee Secures Rs 85 Crore Funding from NKSquared, Among Others

Updated: Mar 26

In a significant development for the Indian coffee industry, Subko Coffee, a specialty coffee roaster and craft bakehouse, has raised over Rs 85 crore in a Series B funding round. Notable existing investors, including Pallavi and Srinivas Dempo, Jay Mehta, Gauri Khan Family Trust, and John & Priya Abraham, participated in the funding round through a rights issue.

The funding round also attracted investment from various individual investors, including prominent names such as Blume Ventures and Progressive LLP.

The Kamath brothers-founded NKSquared made a substantial investment of approximately Rs 70 crore into Subko Coffee, with the rest coming from a diverse group of investors, including celebrities and seasoned investors like Pallavi Dempo, Suprapadh S Manohar, John Abraham, Kalpathi Ratna, and Suparna Gupta.

Blume Ventures and Progressive Strategies LLP collectively contributed Rs 4.75 lakh to the funding round. NKSquared's investment resulted in the acquisition of a 25% stake in Subko Coffee, valuing the Mumbai-based startup at approximately $35-40 million post-money, as per the report.

Founded in March 2020 by Rahul Reddy, Subko Coffee has demonstrated remarkable growth, with its revenue witnessing a substantial increase of 94% to Rs 13.57 crore in FY23, up from Rs 7 crore in FY22. However, the company also reported a loss of Rs 9.86 crore during the same period.

Subko Coffee offers a range of caffeinated beverages, baked goods, and coffee roasts, competing with other established brands in the market such as Third Wave Coffee, Blue Tokai, and Rage Coffee.

This significant infusion of funds is expected to fuel Subko Coffee's expansion plans and further strengthen its position in the competitive coffee industry landscape.


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