Sleepy Owl Coffee Pvt Ltd, which owns and operates the Sleepy Owl brand of cold brew coffee, has raised $500,000 (Rs 3.26 crore) in a seed round led by Deepak Shahdadpuri-led venture capital firm DSG Consumer Partners.
The investment by DSG Consumer Partners is the second bet placed by it in the packaged beverages space. The Singapore-headquartered investment firm was also one of the early backers of Mumbai-based Rakyan Beverages, the maker of the RAW Pressery brand of organic cold-pressed juices.
Proceeds from the round of investment will be used by the Delhi-based Sleepy Owl to expand production, its retail presence, marketing, as well as streamline operations across the board.
The company claims to source grade-A plantation Arabica beans from Chikamaglur in Karnataka.
“We are very impressed by Ashwajeet, Arman and Ajai and their clear vision for the brand, product and category,” Shahdadpuri.
“We look forward to working closely with the team to build this new category of cold brew coffee, bringing premium Indian coffee to customers in a convenient format.”
Sleepy Owl currently retails through Foodhall, Le Marche and Modern Bazaar retail chains, apart from its own website.
The transaction comes at a time when investors – both, venture capital and strategic – are increasingly looking for opportunities to back home-grown ventures operating in the broader packaged food and beverages space.
In October last year, RAW Pressery reportedly raised $6 million in an internal round of funding from Sequoia Capital, Saama Capital and DSG Consumer Partners.