Sleepy Owl, a Delhi-based start-up in the ready-to-drink coffee space, has raised an undisclosed amount as growth capital in their latest round of funding. This round is led by Rukam Capital and existing investor DSG Consumer Partners & AngelList India also participated. The brand will use the proceeds from the current round of funding to expand operations, strengthen distribution and launch new products.
Founded in 2016, Sleepy Owl sells ready-to-drink cold brew coffees, brew boxes, brew packs and brew bags. The company was co-founded by Ajai Thandi, Arman Sood and Ashwajeet Singh. The trio gave up their corporate jobs to pursue their shared dream of building their own venture. They have been included in the coveted ‘Forbes 30 under 30 India’ for the year 2020.
Over the past decade, the appeal for coffee has grown across the country, particularly in urban areas. Factors such as globalization, an expanding middle class, rising disposable incomes and changing lifestyle have all contributed to the increase in coffee consumption in the country. With a core focus on product development and innovation, the brand offers two product categories—hot brew and cold brew. Curated for the discerning brew seekers, Sleepy Owl’s hot brew bags form an intense flavour in under five minutes. Under the cold brew category, the company retails cold brew packs and ready-to-drink bottled coffee in various flavours.
Speaking on the funding, Ajai Thandi, Co- Founder, Sleepy Owl said, “The coffee lovers’ landscape has evolved across the globe and the cold brew coffee concept has gradually seeped into the Indian markets as well. We entered the market as pioneers in the space and helped educate the Indian consumer about cold brew coffee. Being backed by DSG Consumer Partners in 2018, made it much easier for us to establish and grow our brand. 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 utilise the funds to launch new products and go deeper in our existing retail markets Delhi and Mumbai.”
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 and DSG Consumer Partners to further strengthen the brand’s pan India presence. The company has demonstrated a strong growth pattern since their launch in 2016. With this investment, we are confident that Sleepy Owl will get the required impetus to further scale up their 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, Managing Partner, Rukam Capital.
“Sleepy Owl has made tremendous progress since we first invested in the business in 2018. The key to the company’s success is the focus on innovation. Over the last 18 months Sleepy Owl has achieved many firsts including launching India’s first RTD cold brew coffee and India’s first hot brew bag. We are excited to have Rukam Capital join us as partners and look forward to working closely with the founders as they develop and launch a portfolio of innovative coffee centric products. They have demonstrated product-market fit in their first two markets of Delhi and Mumbai and will continue to build their presence in these core markets,” said Deepak I. Shahdadpuri, Managing Director, DSG Consumer Partners.
Sleepy Owl has a presence in 1,000+ outlets in Delhi and Mumbai and has catered to 60,000 customers. Their products are also available on the company’s website and Amazon.