Chennai-based D2C snacking brand Sweet Karam Coffee has raised $8 Mn in its Series A funding round led by Peak XV Partners. The round also saw participation from existing investor Fireside Ventures.
The startup will utilise the capital to expand its product portfolio and geographical presence.
Founded in 2015 by Anand Bharadwaj, Nalini Parthiban, Srivatsan Sundararaman, and Veera Raghavan, Sweet Karam Coffee sells a range of south Indian sweets and snacks, which it claims are free of palm oil and preservatives, and filter coffee. It also sells condiments and ghee.
The startup sells its products via its website, ecommerce marketplaces and quick commerce platforms. It claims to serve customers across 32 countries.
To support its next phase of growth, the startup recently appointed former Unilever executive Nandhitha Indermohan as its chief operating officer. She has over 15 years of experience in supply chain and operations.
The funding comes almost two years after Sweet Karam Coffee raised $1.5 Mn from Fireside Ventures.
On the financial front, the startup reported a whopping 558% increase in its operating revenue to INR 11.2 Cr in FY24 from INR 1.7 Cr in the previous fiscal year. However, its loss too surged 10X to INR 7.58 Cr from INR 77 Lakh in FY23.
Rising Demand For Healthy Snacking
The Covid-19 pandemic has brought a shift in consumption patterns, with the demand for healthy and preservative-free snacks on the rise across the globe. This has led to the emergence of a number of D2C brands in India which are looking to meet this demand through chemical free and healthy alternatives to fried and high-calorie snacks.
As a result, investors have also been lining up to invest in such brands. For instance, Kerala-based Beyond Snack, which competes with Sweet Karam Coffee, bagged $8.3 Mn in its Series A funding round led by 12 Flags Group in January this year.
The Whole Truth Food also raised $15 Mn in a round led by Sofina Ventures earlier this year, while actor Ranveer Singh’s Super You secured funding from Zerodha’s Kamath Brothers recently.
Besides the healthy snacking category, the D2C sector as a whole is seeing rapid growth in India on the back of rising disposable incomes and increasing number of online users. The Indian D2C market is projected to become a $300 Bn market opportunity by 2030.
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