Hatti Kaapi raises Rs 10 cr in Pre Series A round, plans to open 200 outlets

Bangalore-based coffee brand Hatti Kaapi has raised Rs100 million (Rs.10 crores) in a 'Pre A series' round funding led by BlueWolf Capital, Investribe, Kochi Holdings and CreedCap Asia.

“F&B' industry is one of the worst affected sectors because of the ongoing pandemic. Being one of the top performers in our segment also has to bear the brunt of COVID forced shutdowns. Thus, this fresh round of capital infusion through fundraising makes it more special,” shared U S Mahendar, Chairman and Managing Director.

The capital raised will be primarily used to expand the brand's retail and cloud footprint to 200+ stores from the existing 115 outlets.

The fund will also be used to scale up its ready-to-use product portfolio under the 'Six Seconds' line of products on both online and offline channels.

The brand also launched contactless kiosks, which cater to the requirement of the present day. During this period,  they also launched new line of ready-to-use products. It includes Six Seconds-ready-to-use Filter Coffee Decoction for brewing filter coffee instantly, immunity booster drinks like Kashaya (spices mix) and Golden Latte (Turmeric mix) and Ooru (coffee powder brand for the mass market).

Commenting on the funding, Sekhar from Investribe added, "In the course of this decade, authentic & regional brands will need to offer multi-products via an omni-channel strategy to be able to own every stage of the customer experience. As early backers in 2017, we have seen the company grow its stores by 14x and believe this is the right team to scale deeper into tier-2 and 3 India. We have also seen them master product standardization due to adoption of modern packaging and food technology."

Despite the various challenges, the homegrown brand has successfully stuck to its ground and has grown exponentially over the last decade. Started in Bangalore in 2009 by Mahendar and Gowda, the company has slowly evolved as one of India's fastest-growing authentic coffee chains, with an enviable portfolio of multi-format cafes and coffee decoction and powder in the FMCG segment. Currently, the brand is present across nine cities with 115 outlets.