Toffee Coffee Roasters raises pre-Series A round led by IPV

Coffee brand Toffee Coffee Roasters has raised Rs 5 crore in pre-Series A funding round led by IPV along with participation from 66 bridge partners, Abhijit Vemuganti and Invesst. The startup was also featured on Shark Tank India and backed by Ritesh Agarwal.

The proceeds will be utilized for expansion of operations of the company, enhancing and expanding the backend roastery, improving packaging quality, and new product development, as the brand continues to expand its portfolio, Toffee Coffee Roasters said in a press release.

Co-founded in 2019 by Rishabh Nigam and Nandini Shrivastava, Toffee Coffee Roasters ventured as a specialty coffee cafe in Mumbai and in 2020, during lockdown, the brand pivoted to delivering freshly roasted coffees to Mumbai and then across India. The brand has since scaled to over 2 lacs customers across marketplaces, website and quick comms and function out of a 10k sqft roastery where the brand directly sources, processes, freshly roasts its coffees and freshly delivers through its channels.

According to market research, the global coffee market is valued at $150–200 billion, while India’s coffee market stands at around $2 billion with a promising CAGR of over 20 percent.

The company focuses on sourcing, roasting, and blending some of the finest coffees from around the world. The company has a lean supply chain, cutting middlemen to ensure better quality at the right price for the customer. 

Toffee Coffee Roasters claims that it currently produces more than 5 tonnes of coffee every month, and over 40,000 units are consumed monthly. This adds up to roughly 3-4 lakh cups of coffee made at home across the country. The company now aims to scale production to 50 tonnes a month, a level that would support Rs 8-10 crore in annualised revenue and place its coffee in the hands of 8-10 lakh customers. It also claims to hold around 1-2% market share in the overall coffee category.