Speciality coffee and bakery brand Blue Tokai has secured funding worth $35 million from Verlinvest. The Series C funding round also saw participation from existing investors Anicut Capital and A91 Partners.

The strategic partnership will empower Blue Tokai to deepen its presence in existing metro markets and expand into new Tier-I & II cities in India over the next three years.

Currently, Blue Tokai has 130 outlets delivering a range of specialty coffee products and artisanal bakery goods. The newly acquired funds will be used to expand to over 350 locations in the next 30-36 months, drive new product innovation, and expand to new channels.

“We will utilise these funds to accelerate our expansion across all channels – from our own cafes to B2B and B2C platforms. By introducing innovative coffee product offerings through new producers, we will enable ourselves to reach new consumers with varied offerings and continue delivering consistent coffee experiences,” said Matt Chitharanjan, Co-founder and CEO, Blue Tokai.

It has been adding five cafes every month for over a year, and expects this funding to meet its three-year target of 350+ cafes in India, noted Shivam Shahi, the Co-founder and COO of Blue Tokai Coffee Roasters.

In January 2023, Blue Tokai raised ₹200 crore from A91 Partners in a Series B round, which also saw investment banker Kothari come in at a ₹600-crore valuation, post-money.

Founded in 2013 by Matt Chitharanjan, Namrata Asthana and Shivam Shahi, Blue Tokai competes with domestic peers such as Araku, Subko Coffee, and Third Wave Coffee Roasters, along with international players such as Starbucks and Tim Hortons.

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