Indian speciality coffee and cocoa startup Subko Coffee has secured Series B funding of Rs851m ($10m) at a valuation of Rs2.87bn ($34m), Entrackr has reported.

The investment round was led by NKSquared, an investment firm supported by Zerodha cofounders, with participation from existing investors.

NKSquared has acquired a 25% stake in the coffee chain with an infusion of Rs700m.

The funding round also saw contributions from existing backers including Pallavi and Srinivas Dempo, Jay Mehta, the Gauri Khan Family Trust and John and Priya Abraham through a rights issue.

Blume Ventures and Progressive also joined the latest fundraising initiative. quoted one of Subko Coffee’s spokespersons as saying: “We are thrilled to have received such overwhelming support from our investors, especially from NKSquared and our existing backers.

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“This investment will bolster our efforts to further expand our footprint in the speciality coffee market and continue delivering exceptional experiences to our customers.”

Despite competition from industry players such as Blue Tokai, Rage Coffee, Seven Beans Co, Slay Coffee, Sleepy Owl and Third Wave Coffee, Subko has shown significant growth, reported  

The company’s revenue soared by 94% to Rs135.7m in FY23 from Rs70m in the previous fiscal year although it reported a loss of Rs98.6m during the same period.

Third Wave Coffee appointed Rajat Luthra as its new CEO earlier this month.

Luthra, the former head of KFC India and Nepal, is set to join the Third Wave Coffee board on 1 April. In September 2023, Third Wave secured an investment of $35m from private equity fund Creagis.