Subko Coffee Roasters, a Mumbai-based specialty coffee and craft-baked goods brand, reported sales of INR 13.5 Cr in the financial year ended March 31, 2023. This marked a 94% increase from the INR 7 Cr operating revenue it posted in the previous fiscal year.
Subko Coffee generates revenue by retailing coffee and bakery items via its cafes and online platform. According to its financial records, the majority of its earnings, amounting to INR 13.4 Cr, stemmed from coffee product sales during FY23.
During the fiscal year FY23, the net loss surged to INR 9.1 Cr, up from INR 1.7 Cr in the preceding fiscal period.
Expenditure surged by 176% to INR 23.4 Cr in the fiscal year under review, up from INR 8.5 Cr in FY22, reflecting the robust expansion of the startup’s operations.
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Employee costs were the largest expenditure for the specialty coffee startup. During the year under review, it spent INR 6.6 crore on employee benefit expenses, marking a 154% increase from INR 2.6 crore. This suggests the startup has been expanding its workforce.
Subko Coffee spent INR 3.8 crore on procuring raw materials for coffee, bakehouse, and cacao products in FY23, a 58% increase from INR 2.4 crore in FY22.
The startup’s rent expenditure more than doubled, rising to INR 2 crore in FY23 from INR 70 lakh in the previous fiscal year.
EBITDA loss amounted to INR 8.2 crore, up from INR 87 lakh in FY22. The EBITDA margin was -60.5% during the year under review, compared to -12.46% in the previous fiscal year.
Founded in 2020 by Rahul Reddy, Subko Coffee claims to source coffee beans, fine cacao, and wheat directly from farmers. In addition to its website, it sells its products through its flagship cafes and ‘mini’ pop-up stores.
Earlier this year, the startup raised approximately $10 million in funding from Nikhil Kamath, reaching a valuation of $34 million. The round also included contributions from Blume Founders Fund, The Gauri Khan Family Trust, John Abraham and his wife Priya, among others.
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The startup said it will utilize the fresh funds for talent acquisition, developing tech-driven customer experiences, product and design research, improving farm-level infrastructure for specialty green coffee and fine cacao beans, and launching new ‘ready to drink’ coffee products.
Subko Coffee competes with emerging specialty coffee brands like Third Wave Coffee, Blue Tokai, and abCoffee.
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