INDIA- Brussels-based investment firm Verlinvest has acquired a significant stake in coffee and bakery brand Blue Tokai after a US$35 million investment.
The investment was made through a Series C funding round. The round also included contributions from other investors like A91 Partners and Anicut capital.
The investment reflects confidence in the coffee and bakery brand, which has experienced robust growth in the past few years. The brand has 130 outlets in India.
According to Blue Tokai, the investment will enable it to expand its footprint in current metropolitan markets and Tier I and Tier II cities across India until 2027.
The coffeehouse chain also revealed it plans to use the funds from the investment to increase its outlets from the current 130 to 350.
The funds will also be used for product development and enhancing its distribution channels to support the planned outlet expansion.
Verlinvest welcomed the acquisition, praising Blue Tokai’s customer service and products. The investment firm views this strategic acquisition as the next step in the coffee and bakery company’s growth in India and beyond.
Arjun Anand, Verlinvest’s Managing Director and Head of Asia, said, “We are thrilled to partner with Blue Tokai in their mission to bring speciality coffee to millions across India. Matt, Namrata and Shivam have brilliantly crafted a cult brand known for its exceptional products and customer experience.”
“Together, we are committed to elevating Blue Tokai to new heights, creating India’s leading coffee chain and delighting consumers with unparalleled quality and service.”
Matt Chitharanjan, Blue Tokai’s co-founder, also welcomed the investment. He reiterated the investment presents a unique opportunity for the coffeehouse chain to bring its ‘passion for coffee’ to more people.
He also stated the company’s plan to utilize the funds to accelerate expansion across all channels, from cafes to business-to-business platforms.
Chitharanjan stated, “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.”
According to analysts, the investment is a continuation of Blue Tokai’s aggressive growth strategy. In March, the coffee and bakery company opened its 100th café in Kolkata.
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