Sweet Karam Coffee (SKC), a South Indian food and snacking brand, has secured approval to raise Rs 30 crore through an extension of its Series A round, underscoring renewed backing from existing investors and signalling growing investor confidence in regional D2C food brands.
Existing backers lead Rs 30 crore infusion
Regulatory filings show the company’s board approved issuance of 19,221 Series A1 compulsorily convertible preference shares (CCPS) at Rs 15,609 per share to mobilise Rs 30 crore. Peak XV Partners will lead the tranche with a Rs 20 crore commitment, while Fireside Ventures will contribute Rs 10 crore. Both firms had participated in SKC’s earlier Series A and are increasing their exposure.
Valuation jumps 85% on strong growth indicators
The extension is priced at an 85% premium to the previous round, lifting Sweet Karam Coffee’s post-money valuation to about Rs 580 crore from roughly Rs 313 crore at the time of its earlier $8 million Series A. Investors cite rapid revenue growth, expanding customer reach and favourable market dynamics for regional, clean-label food as drivers of the uplift.
Why investors are bullish
India’s D2C food and snacks market has seen heightened demand for preservative-free, traditional and regionally authentic products. Brands that marry heritage recipes with modern packaging, digital distribution and quick-commerce availability have attracted strong consumer interest and investor capital.
Use of proceeds and expansion strategy
According to filings, the fresh capital will be deployed to scale distribution, bolster supply-chain capabilities, broaden the product portfolio and accelerate brand-building activities. The company has been active online through its own website, major marketplaces and quick-commerce platforms to increase reach.
Business profile and product focus
Founded in 2015, Sweet Karam Coffee specialises in South Indian sweets, savouries and filter coffee, marketing products with claims such as no palm oil, no maida and no preservatives. Over time it has diversified into pickles, masalas, ghee and other traditional condiments, and says it serves customers in 32 countries, reflecting demand for regional Indian foods overseas.
Financial performance: strong revenue growth, widening losses
SKC reported operating revenue of Rs 46 crore in FY25, more than four times the Rs 11.26 crore recorded in FY24, indicating rapid topline expansion. At the same time, losses widened to Rs 24.78 crore in FY25 from Rs 7.58 crore a year earlier, as the company invested aggressively in growth, marketing and operations—typical of early-stage consumer brands balancing scale and profitability.
Positioning in India’s D2C snack ecosystem
The D2C food and snack segment in India is competitive but offers opportunities for differentiated regional brands. With marquee investor support and an improved valuation, Sweet Karam Coffee is positioned to pursue a scaling phase focused on expanding distribution, strengthening supply chains and deepening consumer engagement for premium, clean-label regional foods.
