Bengaluru-based alternative investment firm Optimistic Capital has launched its first fund of INR 200 crore (approximately $23.9 million) to focus on investments in India’s microbrewery sector.
According͏͏ to͏͏ a͏͏ statement͏͏ from͏͏ the͏͏ AIF,͏͏ this͏͏ fund͏͏ aims͏͏ to͏͏ support͏͏ innovative͏͏ microbreweries͏͏ by͏͏ providing͏͏ the͏͏ capital͏͏ and͏͏ expertise͏͏ needed͏͏ for͏͏ growth͏͏ in͏͏ the͏͏ craft͏͏ beer͏͏ market.
Targeting͏͏ Key͏͏ Markets͏͏ for͏͏ Expansion:
The͏͏ fund͏͏ seeks͏͏ to͏͏ leverage͏͏ the͏͏ profitability͏͏ of͏͏ microbreweries,͏͏ targeting͏͏ growth͏͏ in͏͏ markets͏͏ such͏͏ as͏͏ Bengaluru,͏͏ Hyderabad,͏͏ and͏͏ Pune.
Bengaluru͏͏ is͏͏ home͏͏ to͏͏ more͏͏ than͏͏ 80͏͏ microbreweries,͏͏ with͏͏ most͏͏ of͏͏ them͏͏ reporting͏͏ profit͏͏ margins͏͏ exceeding͏͏ 20%,͏͏ the͏͏ company͏͏ noted.
Experienced͏͏ Founders͏͏ Behind͏͏ Optimistic Capital:
Optimistic͏͏ Capital,͏͏ founded͏͏ by͏͏ Karthik Chandrasekaran, Jeff Jose, Varun Krishnan, and Edwin Daniel,͏͏ is͏͏ an͏͏ alternative͏͏ investment͏͏ fund͏͏ that͏͏ adopts͏͏ an͏͏ owner-operator͏͏ model,͏͏ investing͏͏ capital͏͏ while͏͏ also͏͏ playing͏͏ an͏͏ active͏͏ role͏͏ in͏͏ the͏͏ management͏͏ and͏͏ growth͏͏ of͏͏ its͏͏ portfolio͏͏ companies.
The͏͏ fund͏͏ is͏͏ supported͏͏ by͏͏ four͏͏ founding͏͏ partners͏͏ from͏͏ the͏͏ Indian͏͏ School͏͏ of͏͏ Business͏͏ and͏͏ INSEAD.͏͏ Together,͏͏ they͏͏ bring͏͏ extensive͏͏ expertise͏͏ in͏͏ brewing,͏͏ finance,͏͏ and͏͏ marketing͏͏ within͏͏ the͏͏ microbrewery͏͏ industry.
Karthik͏͏ Chandrasekaran͏͏ is͏͏ a͏͏ co-founder͏͏ of͏͏ URU͏͏ Brewpark,͏͏ a͏͏ prominent͏͏ microbrewery͏͏ in͏͏ Bengaluru͏͏ that͏͏ offers͏͏ a͏͏ unique͏͏ combination͏͏ of͏͏ a͏͏ park͏͏ setting͏͏ and͏͏ craft͏͏ beer.
Varun͏͏ Krishnan͏͏ has͏͏ led͏͏ large-format͏͏ microbreweries,͏͏ concentrating͏͏ on͏͏ financial͏͏ planning͏͏ and͏͏ strategy͏͏ while͏͏ utilising͏͏ his͏͏ global͏͏ experience͏͏ in͏͏ project͏͏ management͏͏ and͏͏ corporate͏͏ finance.
Jeff͏͏ Jose͏͏ has͏͏ a͏͏ strong͏͏ background͏͏ in͏͏ sales͏͏ and͏͏ marketing,͏͏ having͏͏ worked͏͏ with͏͏ Kellogg͏͏ Company͏͏ and͏͏ provided͏͏ advisory͏͏ services͏͏ to͏͏ major͏͏ brands͏͏ such͏͏ as͏͏ Burger͏͏ King͏͏ and͏͏ Popeyes͏͏ in͏͏ the͏͏ APAC͏͏ region.
Edwin͏͏ Daniel͏͏ spearheaded͏͏ revenue͏͏ at͏͏ Branch͏͏ International,͏͏ a͏͏ profitable͏͏ micro-bank,͏͏ and͏͏ has͏͏ a͏͏ track͏͏ record͏͏ of͏͏ successful͏͏ exits͏͏ and͏͏ turnarounds͏͏ throughout͏͏ his͏͏ career.
“The͏͏ microbrewery͏͏ sector͏͏ in͏͏ India͏͏ is͏͏ experiencing͏͏ transformative͏͏ growth͏͏ due͏͏ to͏͏ increasing͏͏ consumer͏͏ demand͏͏ for͏͏ craft͏͏ beers͏͏ and͏͏ experiential͏͏ dining.͏͏ As͏͏ more͏͏ tier͏͏ 1͏͏ and͏͏ tier͏͏ 2͏͏ cities͏͏ embrace͏͏ this͏͏ shift͏͏ in͏͏ consumption,͏͏ our͏͏ fund͏͏ is͏͏ well-positioned͏͏ to͏͏ capitalise͏͏ on͏͏ this͏͏ opportunity,”͏͏ said͏͏ Karthik͏͏ Chandrasekaran,͏͏ General͏͏ Partner͏͏ at͏͏ Optimistic͏͏ Capital.
Continue͏͏ Exploring:͏͏ India’s͏͏ top͏͏ beer companies͏͏ unite͏͏ to͏͏ launch͏͏ Brewers͏͏ Association͏͏ of͏͏ India
This͏͏ development͏͏ comes͏͏ as͏͏ the͏͏ Karnataka͏͏ state͏͏ government͏͏ has͏͏ extended͏͏ operational͏͏ hours͏͏ for͏͏ F&B͏͏ outlets͏͏ to͏͏ 1͏͏ AM͏͏ and͏͏ eased͏͏ licensing͏͏ requirements.͏͏ The͏͏ company͏͏ highlighted͏͏ that͏͏ the͏͏ government͏͏ has͏͏ also͏͏ reduced͏͏ the͏͏ space͏͏ requirement͏͏ for͏͏ installing͏͏ microbreweries͏͏ from͏͏ 10,000͏͏ sq.͏͏ ft.͏͏ to͏͏ 6,500͏͏ sq.͏͏ ft.͏͏ to͏͏ encourage͏͏ more͏͏ entrants͏͏ into͏͏ the͏͏ sector.
This͏͏ fund͏͏ launch͏͏ aligns͏͏ with͏͏ the͏͏ rapidly͏͏ expanding͏͏ microbrewery͏͏ market͏͏ in͏͏ India,͏͏ fueled͏͏ by͏͏ increasing͏͏ consumer͏͏ demand.
Consequently,͏͏ startups͏͏ such͏͏ as͏͏ Bira͏͏ 91,͏͏ Moonshine͏͏ Meadery,͏͏ White͏͏ Owl͏͏ Brewery,͏͏ Brewbot,͏͏ The͏͏ Rockclimber,͏͏ and͏͏ Sula͏͏ Vineyards͏͏ have͏͏ established͏͏ a͏͏ strong͏͏ presence͏͏ in͏͏ the͏͏ startup͏͏ landscape.
A͏͏ Promising͏͏ Future͏͏ for͏͏ India’s͏͏ Beer Market:
According͏͏ to͏͏ a͏͏ report,͏͏ India’s͏͏ beer͏͏ market͏͏ was͏͏ valued͏͏ at͏͏ INR͏͏ 414.7͏͏ billion͏͏ in͏͏ 2023͏͏ and͏͏ is͏͏ expected͏͏ to͏͏ surpass͏͏ INR͏͏ 781.2͏͏ billion͏͏ by͏͏ 2032,͏͏ showing͏͏ a͏͏ compound͏͏ annual͏͏ growth͏͏ rate͏͏ (CAGR)͏͏ of͏͏ 7.1%͏͏ from͏͏ 2024͏͏ to͏͏ 2032.
