Coffee Start-up Sleepy Owl raises second round of funding from Rukam Capital, AngelList India and DSG Consumer Partners

New Delhi, March 04, 2020: 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. The round was led by Rukam Capital and AngelList India also participated along with existing investors DSG Consumer Partners. 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, Sleepy Owl Co- Founder, Ajai Thandi 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, Rukam Capital’s Managing Partner.

“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.

About Sleepy Owl:

The vision at Sleepy Owl is to redefine the in-home and out of home coffee experience. The brand wants consumers to have the best quality coffee as conveniently as possible. Sleepy Owl Cold Brew is made from the best Indian beans, carefully roasted in small batches. It is brewed slowly in cold water over twenty-two hours, extracting the flavour from the beans but leaving out the bitterness. The result is coffee that’s naturally smooth and less acidic. Sleepy Owl’s signature chocolatey & nutty flavor comes from single-origin Arabica beans grown at 5300ft in Chikamaglur. We use 100% Grade-A Plantation beans. The coffee is made strictly on-demand. Roasted, ground and brewed fresh every single day. Delivered fresh every single day. No exceptions. Ever. Website – www.sleepyowl.co

About RUKAM CAPITAL

Rukam Capital is a New Delhi-based venture capital firm investing in early-stage consumer products and services companies that have the potential to transform the way people live and work. Set-up in 2019, Rukam Capital has consistently backed purpose-led founders who are passionate about what they do and have the courage to reshape the world. Rukam Capital invests in food & beverage, beauty & personal care, health & nutrition, fashion, mother & baby care and direct-to-consumer (DTC) brands. Across its people and portfolio, Rukam Capital encourages a culture around a core belief articulated by Jeff Bezos that “Big things start small”.

About DSG Consumer Partners:

DSG Consumer Partners (DSGCP) is a venture capital fund focused on identifying, selecting and investing exclusively in early-stage consumer businesses in India and South-East Asia. DSGCP currently has US$100 million under management and is investing from its second fund – DSGCP II.

The founders have built a track record of investing for the long term and leading brands funded and backed by the founders since 2004 include Sula Wines, Saffronart, Cleartrip, Redmart (sold to Lazada), Bakers Circle, Veeba Food (part exit to Verlinvest), Social, Smoke House Deli, OYO Rooms (part exit to Softbank), Zipdial (sold to Twitter), Saraf Foods, Eazydiner, Chope, Mswipe, Burger King India, Chai Point, Suzette, India Lends, GOQii, Raw Pressery, Ramblin’ Brands, Salad Stop and Hostmaker.

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