Blue Tokai Coffee Roasters has recently attracted an investment of $35 million (INR 293.6 crores) from a Belgian investment firm called Verlinvest. This capital infusion has brought a new turnover for Blue Tokai, focusing on a brand that has made its place in the hearts of millions of coffee lovers in India in a very short span of time. Given the increasing opening of specialty coffee outlets in India, the new funding has put Blue Tokai in a great position to enter this market.
This can be seen as the company gearing up for expansion and increasing its efforts towards innovation in the future years. The projected increase in Blue Tokai's operational capacity suggests that the company will set benchmarks in the specialty coffee sector.
Investment details and strategic use
Verlinvest has invested $35 million in Blue Tokai in a Series C funding round, with additional funding from Anicut Capital and A91 Partners. This funding round reflects investors' confidence in the company's expansion prospects and its ability to manage the expansion well.
The fresh capital will be invested in expanding Blue Tokai's operations in existing metro areas and new Tier I and Tier II cities in India. In addition, the company intends to improve the organic growth process and diversify the channels of distribution, thereby expanding the portfolio. Such expansion is expected to keep Blue Tokai one of the major players in the specialty coffee segment.
Blue Tokai's expansion plans
Blue Tokai was founded in 2013 by Matt Chitranjan, Namrata Asthana and Shivam Shahi and has made a name for itself in the niche of specialty coffee in India. The company has expanded its store space to 130 stores in the country last year. With the new funds, Blue Tokai plans to open over 350 outlets in the next 30-36 months. Blue Tokai has been one of the leading companies in this regard, offering a wide variety of finest quality coffee products for the changing Indian market.
Vision of Verlinvest
Verlinvest's strategy for developing effective partnership relationships is to select companies that have superior organic growth opportunities and have fundamental skills. They invest in these companies to guide them and support their growth. The firm places a high level of focus on consumer businesses and in particular businesses that are disrupting industries through technology and sustainability. This includes food and beverages, health and wellness to digitally-driven technologically advanced consumer services.
Verlinvest is interested in acquiring stakes in companies that have a sustainable approach and are beneficial to society. It looks for companies that are economically viable but also have a positive impact on the physical environment and society. However, while Verlinvest is a global company, it relies on local knowledge to make its business successful in different locations.
Such actions enable them to identify promising start-ups in various locations, including emerging markets. The remaining and perhaps the most important element of Verlinvest's value creation activities refers to the strategic development, operational growth and market development of portfolio companies. They actively engage with management to achieve sustainable growth and improve the value of invested companies.
conclusion
Verlinvest's strategic investment of $35 million in Blue Tokai Coffee Roasters reflects the brand's potential and the growing appetite for specialty coffee in India. Blue Tokai has the potential to dominate the market due to its expansion strategies and increasing investments in innovation. This partnership with Verlinvest can be considered to help Blue Tokai increase its production capacity and deliver high-quality coffee to many consumers across the country.
