South Indian food and snacking brand Sweet Karam Coffee (SKC) is set to raise Rs 30 crore (around $3.3 million) in an extension of its Series A funding round, marking a strong show of confidence from its existing investors. As per regulatory filings, the company’s board has approved the issuance of 19,221 Series A1 compulsorily convertible preference shares (CCPS) at an issue price of Rs 15,609 per share to raise the fresh capital.
The new investment will be led by Peak XV Partners, which plans to invest Rs 20 crore, while Fireside Ventures will contribute Rs 10 crore. Both investors had previously backed the brand in its earlier funding round and are now doubling down on their bet.
85% Jump in Valuation Reflects Strong Growth Story
The extension round comes at an impressive 85% premium over the company’s previous valuation. Sweet Karam Coffee’s post-money valuation is expected to reach around Rs 580 crore (approximately $64 million), a sharp rise from roughly Rs 313 crore in its earlier $8 million Series A round.
This significant valuation jump reflects investor confidence in the company’s rapid growth, expanding customer base, and strong positioning in the fast-growing D2C food and snacks market. Regional, authentic food brands are witnessing strong traction as Indian consumers increasingly prefer clean-label, preservative-free and traditional products.
Expansion Plans and Market Scaling Ahead
According to filings, the fresh funds will be utilised primarily for business expansion. This includes strengthening distribution networks, improving supply chain infrastructure, expanding the product portfolio, and accelerating brand-building initiatives.
Founded in 2015, Sweet Karam Coffee has carved a niche for itself by offering authentic South Indian sweets, savouries, and filter coffee. The brand is known for its promise of no palm oil, no maida, and no preservatives. Over time, it has expanded into categories such as pickles, masalas, ghee, and traditional condiments.
The company operates through its website and major online marketplaces and has also tapped into quick commerce platforms to boost reach. Notably, the brand claims to serve customers across 32 countries, reflecting growing global demand for Indian regional foods.
Revenue Surges, Losses Widen Amid Growth Push
Financially, Sweet Karam Coffee has delivered strong topline growth. Its operating revenue jumped over four times to Rs 46 crore in FY25 from Rs 11.26 crore in FY24. The sharp growth indicates strong demand and effective scaling strategies.
However, like many young D2C brands investing heavily in expansion, marketing, and operations, losses also widened. The company’s losses increased 3.3 times to Rs 24.78 crore in FY25 compared to Rs 7.58 crore in the previous year. These numbers highlight the balancing act between aggressive growth and profitability that early-stage consumer brands often face.
Strengthening Its Position in India’s D2C Snack Market
The Indian D2C food and snack ecosystem has become increasingly competitive, with consumers embracing convenience and authenticity in equal measure. Brands that combine traditional recipes with modern branding and digital distribution have seen strong market acceptance.
Sweet Karam Coffee appears to be riding this trend successfully. With continued backing from marquee investors and a sharply improved valuation, the company is positioning itself for the next phase of expansion.
The Series A extension not only strengthens its balance sheet but also signals sustained investor belief in the brand’s long-term potential. As demand for regional, premium, and clean-label food products grows both in India and overseas, Sweet Karam Coffee is aiming to scale its footprint while deepening its connection with consumers who value tradition served with modern convenience.