Subko Coffee has mopped up INR 80 Cr in a new funding round led by NKSquared, a firm backed by Zerodha co-founders, according to sources aware of the development. The round saw investments from individuals, Blume Ventures, Progressive LLP and others.
While NKSquared has invested INR 70 Cr, others put in INR 10 Cr, as per the sources who chose to be anonymous about the deal.
Subko Coffee has got 45 Cr and NKSquared has already made investments worth INR 34.2 Cr as per its regulatory filings with the Registrar of Companies (RoC).
Blume Ventures participated in the funding round with investments worth INR 4 Cr. Other investors who participated in the funding round included Pallavi Dempo, Kalpathi Ratna, John Abraham, Suparna Gupta and Suprapadh S Manohar.
The sources also revealed a 25% stake acquisition by NKSquared in Subko Coffee, a Mumbai-based firm whose valuation stands at $35-40 million post the investment round.
Subko Coffee and NKSquared are yet to confirm the development though.
NKSquared, although founded by Kamath in 2019, became active last year itself. It invested in a few companies such as Nazara Games.
Subko Coffee offers caffeinated drinks, baked bread-pastries and coffee roasters. The company in its filings reveals investments from several celebrities including Tiger Shroff and Gauri Khan between June 2022 and December 2023.
Subko Coffee's growth has been phenomenal in FY 23, with its revenue growing by a steep 94% to INR 13.57 Cr from INR 7 Cr in FY. The firm encountered losses worth INR 9.86 Cr during FY 23.
Subko Coffee's long list of competitors includes Third Wave Coffee, Rage Coffee, Blue Tokai, Seven Beans Co., Sleepy Owl, Slay Coffee, etc.
Interestingly, Zerodha's Co-founder Nikhil Kamath also invests in Third Wave.
YFS Shares the Opinion on Investments in Subko Coffee
This latest startup news is great for Subko Coffee, which has already gained momentum in its financials. The investments led by Zerodha will allow Subko Coffee to compete strongly in its segment, reckons Your First Startup (YFS).