FES Cafe Secures $1 Million in Pre-Series A Funding

Cafe chain FES Cafe has successfully raised about $1 million in a pre-Series A funding round led by 12 Flags. The current investor, Wolfpack Labs, a venture studio established by Aakash Anand and Prerna Gupta, also contributed to this funding. Based in Mumbai, the company had earlier raised Rs 3 crore in a seed funding round, also led by Wolfpack Labs, in July this year. The newly acquired funds will be allocated towards expanding in the Delhi NCR region, enhancing delivery and operations through a central production kitchen, and recruiting talent for the upcoming growth phase.

About FES Cafe

Founded by Vidur Mayor, FES Cafe is a unique eggless dessert café chain that features a variety of items including baked cookies, puddings, alternative-ingredient cakes, seasonal desserts, savoury offerings, and arcade game sections. The cafe also introduces community formats like Coffee Raves. The brand aims to serve as a welcoming third space for the youth of India and proudly claims a dedicated following among Gen Z and millennial customers.

Vision and Expansion Plans

The founder and CEO, Vidur Mayor, expressed that FES Cafe began with a straightforward belief: desserts should be celebrated. With the backing from 12 Flags and Wolfpack, the brand intends to expand its vision into more neighbourhoods, creating dessert-centric cafes that also function as community gathering spots.

Performance and Future Goals

The company reported that it tripled its revenue within the first three months, achieved a store-level EBITDA of 29.8% by its fourth month, and experienced a 347% growth in delivery revenues over 90 days. FES Cafe aims to open more than 100 locations by FY27 across Tier 1 and Tier 2 cities. Moreover, it is in the process of developing a hybrid COCO (company-owned, company-operated) and FICO (franchise-owned, company-operated) model, alongside delivery hubs and packaged dessert options, to enhance its presence beyond physical cafes.