Toffee Coffee Roasters Secures Funding for Expansion

Toffee Coffee Roasters has obtained Rs 5 crore in a pre-Series A funding round, led by IPV, with participation from 66 bridge partners, Abhijit Vemuganti, and Invesst. The startup gained visibility by appearing on Shark Tank India, where it was supported by Ritesh Agarwal. The funds will be directed towards enhancing the company’s operations, expanding its backend roastery, improving packaging quality, and developing new products, as stated in a press release by Toffee Coffee Roasters.

Company Background and Growth

Co-founded in 2019 by Rishabh Nigam and Nandini Shrivastava, Toffee Coffee Roasters began as a specialty coffee café located in Mumbai. During the lockdown in 2020, the brand successfully transitioned to delivering freshly roasted coffee, initially within Mumbai and eventually across India. The brand has grown to serve over 2 lakh customers through various marketplaces, its website, and rapid communication channels. Operating from a 10,000 square foot roastery, the company sources, processes, roasts, and delivers coffee directly through its own channels.

Market Insights

Research shows that the global coffee market is valued between $150 billion and $200 billion, while India’s coffee market is around $2 billion, with a promising compound annual growth rate (CAGR) exceeding 20 percent. Toffee Coffee Roasters focuses on sourcing, roasting, and blending premium coffee from across the globe, maintaining a streamlined supply chain that eliminates middlemen, thus ensuring better quality at competitive prices for customers.

Production and Consumption Metrics

Toffee Coffee Roasters claims to produce over 5 tonnes of coffee monthly, with consumption exceeding 40,000 units each month. This equates to approximately 3-4 lakh cups of coffee brewed at home nationwide. The company is now focusing on scaling production to 50 tonnes per month, which would enable an annual revenue of Rs 8-10 crore and expand its customer base to between 8 lakh and 10 lakh individuals. Currently, it holds an estimated 1-2% market share in the overall coffee sector.