Subko Coffee, a specialty coffee roasting and craft bakehouse company, has secured INR 80 crore in its latest funding round. The investment was led by Zerodha co-founders-backed NKSquared, according to two sources familiar with the deal. Additionally, several individual investors, along with Blume Ventures and Progressive LLP, also participated in the financing round.
“NKSquared has put in around INR 70 crore whereas the remaining INR 10 crore came from other investors,” disclosed one source to Entrackr, requesting anonymity as discussions are not yet public.
According to Subko Coffee’s regulatory filings with the Registrar of Companies (RoC), the company has secured $5.5 million (INR 45 crore), with NKSquared having already invested INR 34.2 crore.
Blume Ventures and Progressive Strategies LLP together contributed INR 4.75 lakh to the investment. Additionally, Pallavi Dempo, Suprapadh S Manohar, John Abraham, Kalpathi Ratna, and Suparna Gupta participated in the financing round.
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According to sources, NKSquared has acquired a 25% stake in the Mumbai-based firm. The person quoted above stated that Subko Coffee has been valued at approximately $35-40 million post-money.
Queries sent to Subko Coffee, NKSquared, and Subko Coffee did not receive an immediate response.
NKSquared, founded by the Kamath brothers in 2019, became active last year and has since backed several companies, including Nazara Games.
Founded in 2020 by Rahul Reddy, Subko Coffee offers a range of caffeinated beverages, baked goods, and coffee roasts. According to its filings, the company attracted investments from various celebrities, including Gauri Khan, Tiger Shroff, and others, between June 2022 and December 2023.
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Subko Coffee has been experiencing rapid growth, as evidenced by its performance in the last fiscal year. The company’s revenue surged by 94%, reaching INR 13.57 crore in FY23, up from INR 7 crore in FY22, while its losses amounted to INR 9.86 crore during the same period.
Subko Coffee competes with brands like Third Wave Coffee, Blue Tokai, Rage Coffee, Slay Coffee, Sleepy Owl, and Seven Beans Co. It’s worth noting that Third Wave Coffee is also supported by Zerodha’s co-founder, Nikhil Kamath.
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