Sleepy Owl, a prominent name in the D2C coffee sector, is securing fresh funding of Rs 12 crore from both new and existing investors, including Optiscape Network Holdings, Gauri Khan Family Trust, Pramod Bhasin, among others. This funding round follows a 2.5-year interval since the company raised Rs 15 crore in October 2023, led by current investors Rukam Capital and DSG Consumer Partners. Prior to this, Sleepy Owl had raised $6.5 million during its Series A funding round in November 2021.
The board of Sleepy Owl has approved the issuance of 37,944 Series C2 preference shares at a price of Rs 3,162.55 each to amass Rs 12 crore ($1.3 million), as noted in its regulatory filing reviewed by Startup Superb. Optiscape Network Holdings will spearhead this tranche with an investment of Rs 5 crore, followed by Pramod Bhasin and Tanvi Bikhchandani, who are set to invest Rs 2.5 crore each. The existing investor Gauri Khan Family Trust is also contributing Rs 2 crore.
As per analysis from Startup Superb, the valuation of Sleepy Owl will rise by 28% to reach Rs 172 crore ($18.5 million) post-money, marking an increase from Rs 134 crore that was established during the prior Rs 15 crore round in October 2023.
Founded in 2016 by Ajay Thandi, Arman Sood, and Ashwajeet Singh, Sleepy Owl is dedicated to delivering premium 100% Arabica coffee, prioritising convenience and exceptional flavour. The brand’s diverse portfolio features instant coffee, hot and cold brew packs, ready-to-drink cold brews, ground coffee, and various brewing kits.
Following this tranche’s allocation, DSG Consumer Partners retains its position as the largest shareholder with a 35.35% stake, followed closely by Rukam Capital at 13.29%. Among the new investors, Optiscape Holdings will hold a 2.91% stake, while Pramod Bhasin and Tanvi Bikhchandani will possess 2.26% and 1.45%, respectively. The stake of Gauri Khan Family Trust will also increase to 1.91%.
Financially, during FY25, the D2C coffee brand saw its revenue double to Rs 44 crore, alongside an impressive reduction in losses by 80%, bringing them down to Rs 2.1 crore in the same period. Sleepy Owl faces competition from firms such as Subko Coffee, Blue Tokai, Rage Coffee, Slay Coffee, and abCoffee, among others.
