Industry Odisha Bureau, Sep 07: Singapore’s Temasek has emerged as the sole contender for Blue Tokai. The potential deal involves a $100 million stake. Blue Tokai is a Gurugram-based specialty coffee company. Temasek is currently conducting due diligence on the transaction. The move highlights growing investor interest in India’s premium coffee market.
Blue Tokai had earlier held preliminary talks with multiple funds. TPG, Temasek and ChrysCapital were all part of those discussions. The company sought to raise at least $100 million. That capital could come through primary or secondary transactions. A primary deal brings fresh capital into the company. A secondary deal lets existing investors sell part of their stake.
Temasek has since pulled ahead of the other contenders. People familiar with the matter described the due-diligence process. They spoke on condition of anonymity, per the report. The potential investment fits Temasek’s wider food-services strategy in India. The fund has also backed Haldiram’s, Rebel Foods and Licious. Milky Mist and Eternal, formerly Zomato, are also in its portfolio.
Blue Tokai was founded in 2013 by three co-founders. Matt Chitharanjan, Namrata Asthana and Shiv Shahi started the company. Its model centers on sourcing, roasting and brewing Indian coffee. The goal was making heritage-estate specialty coffee more widely accessible. Products reach customers through cafés and retail channels.
The company raised ₹175 crore in a Series D extension in May. Anicut Capital led that round separately from the Temasek talks. A91 Emerging Fund, Verlinvest and 12 Flags also participated. Since its founding, Blue Tokai has raised close to $130 million. Earlier backers include A91 Partners, White Whale Ventures and 8i Ventures.
Financial filings show revenue climbing alongside narrowing losses. Muhuavvra Enterprises, which operates the Blue Tokai brand, reported this data. FY25 consolidated revenue reached ₹332.7 crore, per Ministry of Corporate Affairs filings. That’s up from ₹221.13 crore the previous year. Consolidated losses narrowed to ₹50.19 crore from ₹63 crore in FY24.
The potential deal arrives amid rapid growth in organized food services. Redseer values India’s food-services market at $80 billion for 2024. The firm projects 10-11% annual growth through 2030. India’s coffee market specifically was valued near $1.2 billion in 2023. Redseer expects it to reach $2.6-3.2 billion within two years.
Competition among café chains has intensified alongside this growth. Blue Tokai competes with Third Wave Coffee, Subko and Starbucks. International entrants Tim Hortons and Pret A Manger have added further pressure. Elsewhere in the sector, Third Wave Coffee raised ₹408 crore recently. Chaayos is separately said to be seeking $50-70 million.
Temasek’s interest, if finalized, would mark a significant institutional bet. It would reflect confidence in India’s organized specialty coffee segment. The broader market’s growth trajectory continues to draw investor attention.
