de Spoelberch family extends its Indian coffee business by refinancing Blue Tokai

Verlinvest, the family investment firm of AB InBev's historical shareholders—the de Spoelberch family—participated in a new fundraising round for Blue Tokai Coffee Roasters, the leading Indian specialty coffee company.

© Blue Tokai Coffee Roasters

Verlinvest has participated in the new $25 million funding round of Blue Tokai, India's leading specialty coffee and bakery brand, alongside the largest external shareholder, A91 Partners, and existing investors Anicut and 12 Flags.

Last year, for $35 million, the Spoelberch family's investment vehicle had already acquired a significant stake in this "cult brand, known for its exceptional products and customer experience," to quote Verlinvest's Asia head, who seemed to be describing a potential Indian Starbucks.

Launched in 2013, the company, based in Gurugram, one of the country's major business centers, encompasses coffee roasting, retail, and wholesale distribution, catering to individuals, businesses, and the hospitality industry. The brand is committed to promoting sustainable practices by working closely with local farmers and supporting ethical sourcing standards.

Adding spice to already overcaffeinated growth

With the newly injected capital, Blue Tokai intends to boost its retail sales, strengthen its back-end infrastructure and also expand its brand into the Japanese and United Arab Emirates markets.

In India, the market response is such that the founders of Blue Tokai are planning to frantically increase the number of store openings (more than 800 in four years) and double its turnover (estimated at more than $220 million over the same period).

With rising disposable incomes, growing popularity of coffee culture and changing consumer preferences, the Indian coffee market is expected to surpass $1 billion by 2033, with a compound annual growth rate (CAGR) of 11.5%, Indian business media Inc42 puts into context .

These are all reasons why "capital risk-takers" like Verlinvest are investing heavily in coffee chains to capture at least a portion of this value. Globally, the strategic maneuvers of large groups like Keurig and Coca-Cola show a coffee industry in full swing .

From Belgian beers to Asian coffees

The Spoelberch family has a proven track record of developing high-quality brands in the food and beverage sectors across the subcontinent through Verlinvest. These include Lahori, one of India's fastest-growing beverage companies, and Drums Food, an Indian company known for its Epigamia dairy brand.

As for the coffee segment, the investment company also participated in 2020, alongside the compatriot fund Sofina, in the financing of Kopi Kenangan, an Indonesian takeaway coffee chain, whose recipes are adapted to local tastes but whose retail model combines online and offline businesses.

The Belgian-led Venturi Partners fund invested in 2023 in Pickup Coffee, the "Philippine Starbucks," de Tijd recalls, pointing out that one of Venturi's main shareholders is none other than Frédéric de Mévius, a descendant of one of the three founding families of AB InBev and a former director of... Verlinvest.