Optimistic Capital launches Rs 200 Cr fund for microbreweries

Investment firm Optimistic Capital has launched a microbreweries-focused fund worth Rs 200 crore. The fund is an opportunity for investors to tap into the burgeoning microbrewery sector in India, focusing on key markets including Bengaluru, Hyderabad, and Pune.

The fund is devised to capitalize on the profitability of microbreweries and the growth of the craft beer market, Optimistic Capital said in a press release.

The fund is backed by Karthik Chandrasekaran, Jeff Jose, Varun Krishnan, and Edwin Daniel. Optimistic Capital is an alternative investment fund that uses an owner-operator approach. It invests capital while actively participating in the management and growth of its portfolio companies. The firm aims for long-term value creation, focusing on building sustainable, market-leading brands.

Optimistic Capital says that microbreweries are unique from restaurants, bars, pubs, and lounges in offering an inclusive environment that appeals to all generations of people, irrespective of their age or socio-economic background. The expansive space requirements for beer production, along with the flexibility to modify cuisine and craft beers periodically to suit guests' changing preferences, ensures the longevity of the microbrewery model versus other traditional F&B formats.

According to market research, the number of microbreweries in India is expected to exceed 1,000 by 2030, marking a threefold increase from 2024. Bengaluru alone has over 80 microbreweries.

Proost Beer, Maka Di, Arbor Brewing Company, Kati Patang, Witlinger, Bira 91, and Simba are some of the notable brewing companies in India.