Temasek, ChrysCapital In Talks To Invest ₹1,200 Crore In Blue Tokai’s Largest Funding Round

Speciality coffee maker Blue Tokai has drawn interest from two large investors - Singapore’s Temasek Holdings and homegrown private equity firm ChrysCapital, to invest ₹1,000-1,200 crore.

The investment would value the 13-year-old coffee chain at ₹3,550-3,700 crore. With this investment, either Temasek Holdings or ChrysCapital would become its single largest shareholder. For now, both firms have declined to comment.

Key Details Of Blue Tokai’s Largest Fundraising

The fundraising is likely to be a mix of primary and secondary capital. Part of the money will go into the company for growth, while some amount will go to early investors who will sell part of their holdings.

Key points of the proposed round:

● Size: ₹1,000-1,200 crore

● Valuation: ₹3,550-3,700 crore

● Outcome: one investor may own 30-33%, or the stake could be split between the two firms

So far, Blue Tokai has raised $113 million in equity across 13 rounds. Its current valuation stands at ₹2,280 crore, as per data from Tracxn.

A91 Emerging Fund is the largest shareholder with a 21.72% stake, while its three founders together hold 15.27%. Existing backers also include Verlinvest, the investment office linked to the promoters of global brewer AB InBev, along with Waterfield Fund and 12 Flags.

Blue Tokai’s Recent Turnaround

In recent months, Blue Tokai has been turning its numbers around. The chain has remained positive in terms of earnings before interest, taxes, depreciation and amortisation (EBITDA) on a monthly basis for the past six months.

In FY25, its revenue rose 50% year-on-year to ₹325 crore. Its losses narrowed by about 21% to ₹50 crore. The company is yet to file its FY26 results.

According to media reports, Blue Tokai could clock ₹750-775 crore in revenue in FY27, with EBITDA margins of around 40%.

The company’s co-founder Matt Chitharanjan told ET, “All three brands we operate are growing extremely well. We see lots of headroom for that to continue.”

The money raised will be used for the company’s next leg of growth. Blue Tokai plans to:

● Triple its store network in India

● Expand in Japan and the UAE

● Offer an exit to some early seed investors

Blue Tokai’s Expansion Plans And Market Opportunity

Founded in 2013 by Matt Chitharanjan, Namrata Asthana and Shivam Shahi, Blue Tokai Coffee Roasters initially sold freshly roasted arabica beans online.

It later moved into cafes, packaged coffee and subscriptions. Its “farm-to-cup” positioning sets it apart from rivals.

Its parent company Muhavra Enterprises runs 240 outlets today and plans to grow this to 800 outlets by FY30, including new cities such as Ahmedabad and Lucknow.

The two suitors in the latest fundraising bring with them some experience and track record in the food and beverages segment. Temasek has backed Haldiram’s, Licious and Rebel Foods in India, and Luckin Coffee overseas. ChrysCapital bought bakery chain Theobroma in August 2025 for close to ₹2,410 crore.

Market experts say that a Blue Tokai investment could offer ChrysCapital additional synergies. A future tie-up between Theobroma and Blue Tokai has even been discussed, though no decision has been taken yet.

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