Sleepy Owl, a Delhi-based D2C company in the ready-to-drink coffee space, has raised growth capital of $6.5 million in Series A funding. The latest round was led by existing investor Rukam Capital,
followed by existing investor DSG Consumer Partners with
Dexter Capital being the exclusive financial advisor on this deal.
Founded in 2016, Sleepy Owl has a compelling product portfolio which includes Cold Brew Packs, Hot Brew Bags, Ready-To-Drink Cold Brew Bottles, Ground Coffee, Brew Box and a range of Merchandise. The company was co-founded by Ajai Thandi, Arman Sood, and Ashwajeet Singh, who gave up their corporate jobs to pursue their shared dream of building their venture. The trio has also been featured in the coveted ‘Forbes 30 under 30 India’ for the year 2020.
The pandemic put a spoke in their growth plans, however, the team led by its co-founders, navigated the covid crisis and managed to come out stronger. The company is slated to close with an ARR of INR 60cr by March 2022.
Sleepy Owl aims to solidify their
core team, build a robust distribution network across India for increased demand of their brews, and firm up its marketing initiatives.
Speaking on the funding, Sleepy Owl Co-Founder, Ajai Thandi said, “The pandemic played the role of a catapult for us. It forced us to take a few steps back to aim at the target. We were agile and quick on problem-solving, and were able to get back on track with higher numbers. At Sleepy Owl, we are elated on receiving the latest round of funding as it reflects investors’ faith in our business model and growth potential in the Indian market. We plan to utilize the funds to go deeper into our existing retail markets across India and add as we grow.”
Rukam Capital invests in early-stage consumer products and services companies that have exceptional growth prospects and exhibit the potential for substantial returns.
“We are thrilled to have partnered with Sleepy Owl Coffee and DSG Consumer Partners to further strengthen the brand’s pan-India presence. The company has demonstrated a strong growth pattern since its launch in 2016, despite the pandemic. With this investment, we are confident that Sleepy Owl will get the required impetus to further scale up its business and expand operations. The brand has a huge potential of being amongst the fastest growing formats within the coffee business category,”
said Archana Jahagirdar, Rukam Capital’s Managing Partner.
“Sleepy Owl’s growth is driven by continuous innovation and an obsession, being the most loved coffee brand in India. Since our first investment in 2018, founders Ajai, Arman and Ashwajeet, have expanded their product portfolio from Cold Brew to Hot Brew bags, drip coffee formats, ready-to-drink formats, flavoured ground coffee, and have recently launched a subscription service. As it grows, Sleepy Owl is working towards making its products sustainable, reducing plastics and using paper and aluminium. They have stayed true to their mission to introduce more Indians to coffee.”, said Deepak I. Shahdadpuri, Managing Director DSG Consumer Partners.
Sleepy Owl Coffee has a presence in 1700+ outlets in Delhi NCR, Mumbai, Pune, Indore, Bhopal, Chandigarh, and Jammu amongst other cities, and has catered to over 60,000 customers. Their products are also available on the company’s website, Amazon India and BigBasket.
Sleepy Owl was assisted by Incosec Legal as their Corporate Compliance Partners for the deal and Panag & Babu as the legal advisors.
Source: Business World
