Blue Tokai in Talks for Rs 1,200 Crore Funding at Up to Rs 3,700 Crore Valuation

Singapore-based investment firm Temasek Holdings and private equity firm ChrysCapital are competing to invest Rs 1,000-1,200 crore in Blue Tokai Coffee Roasters at a proposed valuation of Rs 3,550-3,700 crore, according to people familiar with the development. The transaction could make one of the investors the coffee chain's single largest shareholder.

Blue Tokai, founded in 2013, is seeking growth capital after turning EBITDA-positive on a monthly basis for the past six months. The proposed fundraise is expected to support the company's plan to significantly increase its India store network, expand in Japan and the UAE, and provide an exit opportunity to some of its early investors.

The deal could result in one investor acquiring a 30-33% stake, although the investment may also be divided between Temasek and ChrysCapital. Blue Tokai's existing investors include Verlinvest, A91 Emerging Fund, Waterfield Fund and 12 Flags, among others. The proposed transaction would be the company's largest funding round to date and is expected to include both primary and secondary capital.

Blue Tokai has raised $113 million across 13 equity funding rounds. Its current valuation stands at Rs 2,280 crore, while A91 is its largest shareholder with a 21.72% stake. The company's three founders collectively hold 15.27%, according to Tracxn data as of August 7.

The interest from the two investors comes as India's premium café segment expands, with branded coffee chains increasing their presence across metros and emerging markets. Temasek already has exposure to India's food and beverage sector through investments in Haldiram's, Licious and Rebel Foods. Its global coffee portfolio includes Luckin Coffee.

ChrysCapital, meanwhile, acquired Indian patisserie chain Theobroma in August 2025 for close to Rs 2,410 crore. The investment firm could potentially find operating synergies between Theobroma and Blue Tokai, although no decision has been made regarding any such combination. Temasek and ChrysCapital declined to comment on the proposed transaction.

“All three brands we operate are growing extremely well. We see lots of headroom for that to continue,” said Matt Chitharanjan, cofounder, Blue Tokai, while declining to comment on fundraising discussions or a potential stake sale.

Blue Tokai has expanded from its original direct-to-consumer coffee business into cafés, packaged coffee and subscriptions. The company operates a farm-to-cup model focused on freshly roasted arabica coffee beans and acquired Suchali’s Artisan Bakehouse in 2024 to strengthen its food offering across cafés. It also partnered with UAE-based Ambrosia Gulf last year to develop outlets in the region.

The parent company, Muhavra Enterprises, currently operates 240 outlets in India and has set a target of 800 outlets by fiscal year 2030. Around 120 stores are planned for the current financial year, including expansion in established metros and cities such as Ahmedabad and Lucknow.

Blue Tokai reported revenue of Rs 325 crore in FY25, up 50% year-on-year, while its losses declined 20.6% to Rs 50 crore, according to regulatory filings. The company has not yet filed its FY26 financial results. According to people familiar with the business, revenue is expected to reach Rs 750-775 crore in FY27, with EBITDA margins of 40%.

“Both Blue Tokai and Third Wave Coffee have similar scale, but Blue Tokai makes almost double the revenues and is turning profitable, which is why investors are making a beeline,” said an industry official familiar with the developments.

Blue Tokai competes with Starbucks, Costa Coffee, Cafe Coffee Day, Barista, Pret a Manger, Tim Hortons and Third Wave Coffee in India's premium café segment. Rising real estate costs, however, remain a challenge for operators as they expand their physical networks.

“The white spaces for branded cafes are enormous. Now profitability and consolidation will be the next steps,” the executive added.

The Indian café market was valued at $425 million in 2025 and is projected to reach $1.15 billion by 2034, growing at an annual rate of 11.14%, according to IMARC Group. Starbucks, which operates in India through a joint venture with Tata Consumer Products, currently has more than 500 stores and plans to add up to 100 outlets annually.

For Blue Tokai, the proposed investment would provide capital for store expansion while strengthening its position in an increasingly competitive branded coffee market, where profitability, store productivity and scale are becoming key factors for investors.