| India

Subko Coffee Roasters posts soaring annual sales but sees expansion costs mount

The Indian specialty coffee and cocoa start-up saw staffing, raw material and property costs significantly increase as operations scaled across Mumbai, Bengaluru and Delhi

Subko Coffee Roasters raised Rs 80 Cr ($9.5m) in March 2024 | Photo credit: Vaishnav Chogal


Mumbai-based Subko Coffee Roasters has posted surging annual revenue growth alongside widening losses amid higher operating costs and ongoing outlet expansion. 

The boutique specialty coffee and cocoa group achieved 94% year-on-year sales growth in the 12 months ending 31 March 2023 to reach Rs 13.5 Cr ($1.6m). The vast majority of revenues were generated from coffee sales, which include a specialty microlot range sourced by Subko from India and Nepal.   

Subko Coffee Roasters’ expenditure increased 176% last year to Rs 23.4 Cr ($2.8m) as the business scaled its physical presence and wholesale operations across Mumbai, Bengaluru and Delhi.  

Staff costs were the largest expenditure, rising 154% to Rs 6.6 Cr ($792,000), while raw material costs increased 58% to Rs 3.8 Cr ($456,000) and rent doubled to Rs 2 Cr ($240,000).

Read related content: All rise for India’s fast-growing coffee industry 

Subko retails specialty coffee, chocolate and gourmet bakery products across its 12 venues, domestic wholesale segment and direct-to-consumer (D2C) channel, which also includes international shipping to the UK, US and the UAE. 

In March 2024, Subko Coffee Roasters raised Rs 80 Cr ($9.5m) in an investment round led by tech-focused private equity firm NKSquared, which valued the business at $34m. 

Subko will use the funding for recruitment, product and design research, the launch of new ready-to-drink (RTD) coffee products and to improve farm-level infrastructure for specialty coffee and cacao beans.  

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