Subko, a brand known for its premium coffee, baked goods, and bean-to-bar chocolate, has secured a significant investment round of $10 million.
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Subko, a Mumbai-based brand known for its specialty coffee, craft-baked goods, and bean-to-bar chocolate, has secured a significant investment of $10 million. Leading the round is renowned investor and co-founder of Zerodha, Nikhil Kamath, valuing the company at approximately $34 million post-money.
Kamath is also an investor in Third Wave Coffee.
Subko competes with several players including Third Wave Coffee, Slay Coffee, Blue Tokai, Sleepy Owl Coffee, Hatti Kaapi, and Rage Coffee.
The latest funding round highlights Subko’s growing appeal. The company’s focus on celebrating South Asian culture through its products, coupled with its design-driven experiential approach, has attracted a diverse range of investors.These include the Blume Founders Fund, The Gauri Khan Family Trust, Priya & John Abraham, Sangita Jindal, Srinivas & Pallavi Dempo, The Mehta International Mauritius Limited Group etc.
The funds will fuel Subko’s expansion plans. Key areas of focus include:
- Building a strong team
- Developing innovative customer experiences through technology
- Investing in research and development for new products and design
- Strengthening farm-level infrastructure for specialty coffee and cacao beans
- Launching ready-to-drink coffee products
Subko also plans a strategic rollout of flagship experience cafes with different formats. These cafes will be carefully curated and launched in select Indian cities and potentially even global capitals. The aim is to showcase South Asian craftsmanship and the region’s exceptional agricultural resources.”Nikhil’s participation is a testament to our brand’s potential,” said Rahul Reddy, Founder, CEO, and Creative Director of Subko. He emphasizes Kamath’s alignment with Subko’s mission: empowering homegrown Indian brands and navigating the complexities of the consumer market.
“I am deeply impressed by Subko’s commitment to showcasing the finest Indian craftsmanship on a global platform. It is paramount that a distinctive Indian brand like Subko leads the way in delivering our unique, curated experiences to the world. My journey with Subko, transitioning from a customer to an investor, has given me unique insights into the brand’s evolution and potential. I am eagerly looking forward to witnessing the brand’s narrative unfold and flourish in the coming years,” said Nikhil Kamat.
Subko Specialty Coffee Roasters and Craft Bakehouse is a coffee roastery, bakehouse, and experiential cafe concept in Mumbai that focuses on the Indian subcontinent’s origin stories across a variety direct-to farmer sourcing efforts.
“Zerodha founders just doubled down on coffee in a big way..Nikhil Kamath already had a small stake in Third Wave Coffee, which is sort of the leading challenger brand competing with Starbucks India today. And now, a firm fully owned by the two brothers (NKSquared) has acquired a massive 25% stake in a smaller competitor.With the existing investment in Third Wave Coffee, the Kamaths would have surely gotten much insights about the functioning and the potentila of the space,” said Jayant Mudhra of Dexter Capital Advisors.
Subko sources specialty coffee, fine cacao, and wheat, directly from farmers and emphasizes hyper-traceability, which involves tracking and documenting every step in the supply chain, including recent block-chain enabled coffee and pioneering direct tipping systems for coffee farmers.
The brand works in direct trade relationships with coffee estates and smallholder farmers harvesting and processing coffee and cacao, roasting and transforming the agricultural produce into fine specialty finished goods, and along with its bakehouse, showcases the products in flagship cafes and ‘mini’ pop up stores in addition to shipping products pan-India, and globally.
source: http://www.business-standard.com / Business-Standard / Home> Companies> News / by Sunaina Chadha, New Delhi / March 26th, 2024
