Temasek in exclusive talks for $100 million Blue Tokai stake
Singapore's Temasek is the sole contender to acquire a $100 million stake in café chain Blue Tokai Coffee Roasters, according to sources.
Singapore's sovereign wealth fund Temasek is now the exclusive contender to buy a $100 million stake in Gurugram-based café chain Blue Tokai Coffee Roasters. Three anonymous sources told Mint that Temasek has moved ahead of other funds and is conducting due diligence for the transaction.
This development follows a report two months ago that Blue Tokai was in preliminary talks with private equity firms TPG, Temasek, and ChrysCapital to raise at least $100 million. The round would involve a mix of primary and secondary transactions, allowing some early investors to cash out. Temasek, TPG, ChrysCapital, and Blue Tokai all declined to comment on the matter.
A successful deal would rank among Blue Tokai's largest capital raises. It also aligns with Temasek's broader strategy of investing in India's food services sector, where it already holds stakes in companies like Haldiram's, Rebel Foods, and Licious.
Building the brand
Blue Tokai was founded in 2013 by Matt Chitharanjan, Namrata Asthana, and Shiv Shahi. The company's mission was to make specialty coffee from heritage Indian estates more accessible through its cafés and retail products. It focuses on sourcing, roasting, and brewing premium Indian coffee.
The chain recently raised ₹175 crore in an extension of its Series D round in May, led by Anicut Capital. Since its inception, Blue Tokai has raised nearly $130 million from a roster of investors including A91 Partners and White Whale Ventures.
Financial performance and market context
The operator of the Blue Tokai brand, Muhuavra Enterprises Pvt. Ltd., has shown significant revenue growth. According to filings sourced from Tofler, its consolidated revenue jumped to ₹332.7 crore in FY25 from ₹221.13 crore in FY24. The company also managed to narrow its consolidated loss to ₹50.19 crore from ₹63 crore over the same period.
This potential investment arrives amid heightened activity in India's premium coffee segment. Last month, rival chain Third Wave Coffee raised ₹408 crore, while Chaayos is seeking $50-70 million. Consulting firm Redseer estimates India's overall coffee market was worth about $1.2 billion in 2023 and is growing rapidly.
| Metric | Figure |
|---|---|
| Blue Tokai FY25 Revenue | ₹332.7 crore |
| Blue Tokai FY24 Revenue | ₹221.13 crore |
| Blue Tokai FY25 Loss | ₹50.19 crore |
| Blue Tokai FY24 Loss | ₹63 crore |
| India Coffee Market 2023 Value | $1.2 billion |
A competitive landscape
Blue Tokai competes in an increasingly crowded market. Its rivals include domestic brands like Third Wave Coffee and Subko, as well as international giants such as Starbucks. The entry of global chains like Tim Hortons and Pret A Manger has intensified competition further.
The company is banking on India's growing taste for specialty coffee as organised café chains expand beyond major metros into smaller cities. Redseer projects the country's food services market, valued at $80 billion in 2024, will grow at 10-11% annually through 2030, driven largely by the organised segment.
