Singapore’s Temasek has emerged as the sole contender to acquire a $100 million stake in Gurugram-based Blue Tokai Coffee Roasters, three people familiar with the matter said.
The development comes two months after Mint first reported that the company had initiated preliminary discussions with private equity firms including TPG, Temasek and ChrysCapital through a mix of primary and secondary transactions, through which some of the earlier investors will monetize their stakes.
Temasek has edged ahead of the other funds and is currently conducting due diligence for the transaction, the people cited above said on the condition of anonymity.
Temasek’s potential investment in the café chain aligns with the sovereign wealth fund’s broader interest in India’s food services market, with bets in companies such as Haldiram’s, , Milky Mist, Licious and Eternal (formerly Zomato).
If the round materializes, it will rank among Blue Tokai’s largest capital raises and one of the biggest funding rounds in India’s organized café and quick-service beverage market. According to Redseer, India’s food services market, valued at $80 billion in 2024, is expected to grow at a compound annual growth rate (CAGR) of 10-11% through 2030, driven largely by the organised segment.
TPG, ChrysCapital, and Temasek declined to comment, while Blue Tokai did not respond to Mint’s requests for comment by the time of publishing.
Building Blue Tokai
Founded in 2013 by Matt Chitharanjan, Namrata Asthana and Shiv Shahi, Blue Tokai was built around sourcing, roasting and brewing premium Indian coffee. The company set out to make specialty coffee from heritage Indian estates more accessible through its cafés and retail products.
The latest discussions come just months after Blue Tokai raised ₹175 crore in an extension of its Series D round in May. The funding was led by Anicut Capital, with participation from A91 Emerging Fund, Verlinvest, 12 Flags and other existing investors.
Since inception, Blue Tokai has raised nearly $130 million from investors including A91 Partners, White Whale Ventures, Ka Enterprises, Snow Leopard Technology Ventures and 8i Ventures.
Coffee heats up
The broader market is also seeing rising investor interest in India’s premium café and specialty coffee market.
Last month, Mint reported that led by existing investor Westbridge Capital alongside Creaegis, as it looks to expand its operations, while is looking to raise $50-70 million.
Redseer estimates India’s coffee market, valued at about $1.2 billion in 2023, will grow at a CAGR of 15-20% to reach $2.6-3.2 billion over the next two years, fuelled by changing consumer preferences and rising organised dining and delivery-led consumption.
Blue Tokai competes with domestic and international brands including Third Wave Coffee, Subko and Starbucks in a market that has become increasingly competitive following the entry of global chains such as Tim Hortons and Pret A Manger.
The company is betting on India’s growing appetite for specialty coffee as organised café chains expand beyond metros into smaller cities.
Muhuavra Enterprises Pvt. Ltd., which operates the Blue Tokai brand, reported consolidated revenue of ₹332.7 crore in FY25, up from ₹221.13 crore a year earlier. It also narrowed its consolidated loss to ₹50.19 crore from ₹63 crore in FY24, according to filings with the ministry of corporate affairs sourced from Tofler.