Subko, a Mumbai-based specialty coffee roaster and craft bakehouse, has made headlines by raising $10 Mn in a fresh funding round led by Nikhil Kamath, co-founder of Zerodha, through his private equity firm NKSquared.

Several investors, including Blume Founders Fund, The Gauri Khan Family Trust, and actor John Abraham, among others, also participated in the funding round. Post this funding round, Subko’s valuation has increased to $34 million.

As per the startup, the freshly raised funds will be utilized to strengthen the talent pool and develop tech-enabled customer experiences. The raised capital will enable the startup to conduct research and development for product design and improve farm-level infrastructure for specialty green coffee and fine cacao beans.

Subko | Specialty Coffee & Craft Baking

Founded by Rahul Reddy, Subko provides caffeinated beverages with baked bread-pastries and coffee roasters, operating through direct trade relationships with coffee estates and smallholder farmers involved in harvesting and processing coffee and cacao.

Speaking on the development, Rahul Reddy, Founder and CEO of Subko, highlighted that Kamath’s participation is not just an investment but a testament to their brand’s potential.

Reddy added,

“His genuine desire to enable the growth of homegrown Indian brands and ability to intertwine complex value judgments in consumer markets aligns perfectly with our mission.”

Statement from the Investor

Commenting on the development, Nikhil Kamath, co-founder of Zerodha, said, 

“It is paramount that a distinctive Indian brand like Subko leads the way in delivering our unique, curated experiences to the world. My journey with Subko, transitioning from a customer to an investor, has given me unique insights into the brand’s evolution and potential.” 

With the raised funding, the Mumbai-based startup also plans to launch new ‘ready-to-drink’ coffee products. In its segment, Subko competes with several players, including Third Wave Coffee, Sleepy Owl Coffee, Hatti Kaapi, Slay Coffee, Blue Tokai, and Rage Coffee. It’s noteworthy that Kamath is also an investor in Third Wave Coffee.

In recent times, there has been an increased investor interest in the specialty coffee space. Recently, Mumbai-based AbCoffee raised $3.4 million in funding. Prior to this funding, AbCoffee, in September 2023, raised $2 million in a seed funding round led by Tanglin Venture Partners to enhance its tech stack and expand its product range.

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