Sweet Karam Coffee (SKC), a Chennai-based brand known for South Indian sweets, savouries and filter coffee, will raise Rs 30 crore through an extension of its Series A round, according to regulatory filings. The board has approved the issuance of 19,221 Series A1 compulsorily convertible preference shares at Rs 15,609 each, reflecting continued investor confidence in the D2C food and snacking start-up.
Backers increase stake as lead investor commits Rs 20 crore
Peak XV Partners will lead the infusion with a Rs 20 crore commitment while existing investor Fireside Ventures will put in Rs 10 crore. Both firms had participated in SKC’s earlier Series A and are increasing their exposure to the brand in this follow-on financing.
Valuation jumps 85% on growth momentum
The funding round comes at an 85% premium to the company’s previous valuation. Post-money, SKC’s valuation is expected to be around Rs 580 crore, up from roughly Rs 313 crore at the time of its earlier $8 million Series A.
The steep rise underscores investor faith in the company’s rapid top-line growth, widening customer base and positioning within India’s expanding direct-to-consumer food and snacks segment, where regional and clean-label products are gaining traction.
Funds earmarked for distribution, supply chain and brand building
Filings indicate the fresh capital will be used to scale distribution, bolster supply chain infrastructure, broaden the product portfolio and accelerate brand-building initiatives. The company has been expanding presence across e-commerce marketplaces and quick-commerce platforms to improve reach and fulfilment speed.
Brand roots and product expansion
Founded in 2015, Sweet Karam Coffee has differentiated itself by focusing on authentic South Indian recipes and a clean-label promise — no palm oil, no maida and no preservatives. The product mix has grown from sweets and filter coffee to include pickles, masalas, ghee and traditional condiments.
The company says it serves customers in 32 countries, reflecting rising global demand for regional Indian foods among the diaspora and international consumers seeking authentic products.
Revenue growth and widening losses reflect scale-up phase
SKC reported operating revenue of Rs 46 crore in FY25, more than four times the Rs 11.26 crore recorded in FY24, indicating strong demand and effective scaling. At the same time, losses widened to Rs 24.78 crore in FY25 from Rs 7.58 crore a year earlier, as the company invested heavily in expansion, marketing and operations.
These financials mirror a common trajectory for early-stage D2C food brands: rapid topline growth accompanied by increased operating expenditure as they prioritise market share and distribution scale over near-term profitability.
Positioning in India’s competitive D2C snack market
The Indian D2C food and snacks ecosystem is crowded and competitive, with consumers favouring convenience, authenticity and clean-label credentials. Brands that combine regional recipes with modern branding and digital distribution have found strong acceptance.
With renewed backing from marquee investors and a sharply improved valuation, Sweet Karam Coffee is positioning itself for accelerated expansion while aiming to deepen consumer engagement in India and overseas.
