In the latest D2C news India spotlighting strong investor conviction in regional food brands, South Indian food startup Sweet Karam Coffee (SKC) is set to raise ₹30 crore (approximately $3.31 million) in a Series A extension round from existing investors Peak XV Partners and Fireside Ventures. The fresh capital comes at an 85% valuation premium, marking a significant milestone in D2C funding rounds and reinforcing momentum in India’s fast-growing D2C food and beverage brands segment.
According to regulatory filings, the board of Sweet Karam Coffee has approved the issuance of 19,221 Series A1 compulsorily convertible preference shares at an issue price of ₹15,609 per share to raise ₹30 crore in this tranche. Peak XV Partners will lead the round with ₹20 crore, while Fireside Venture Investment will participate with ₹10 crore. With this extension, the company’s post-money valuation is expected to rise to approximately ₹580 crore (around $64 million), up from ₹313 crore (about $36.7 million) in its previous $8 million round.
This development stands out in D2C funding news and Indian D2C updates, particularly in the context of D2C brands scaling in 2025 through disciplined expansion and category depth. Founded in 2015, Sweet Karam Coffee operates as a direct-to-consumer India brand offering authentic South Indian sweets, snacks, and filter coffee made without palm oil, preservatives, or maida. Its portfolio also includes condiments, pickles, masalas, and ghee, positioning the company firmly within premium D2C brands India focused on authenticity and clean-label offerings.
The brand sells through its own website, e-commerce marketplaces, and quick commerce platforms, reflecting a robust omnichannel D2C strategy aligned with evolving D2C retail vs ecommerce dynamics. Sweet Karam Coffee claims to serve customers across 32 countries, signaling global ambition within the broader D2C ecosystem India.
In April 2025, SKC had raised $8 million in a Series A round led by Peak XV Partners with participation from Fireside Ventures. Following the latest allotment, Peak XV Partners and Fireside Venture will hold 24.89% and 29.10% stake in the company, respectively. The proceeds from the Series A extension will be utilized toward expansion of business operations, strengthening supply chain capabilities, scaling distribution, and deepening brand presence—core pillars of a scalable D2C business model India.
From a financial performance standpoint, Sweet Karam Coffee has demonstrated sharp D2C revenue growth. Revenue from operations surged over 4X to ₹46 crore in FY25 from ₹11.26 crore in FY24, underscoring strong consumer traction in India’s D2C ecosystem. Losses increased to ₹24.78 crore in FY25 from ₹7.58 crore in FY24, reflecting continued investments in brand building, marketing, and operational scale—common among fastest-growing D2C brands in expansion mode.
The brand’s growth trajectory reflects broader D2C market trends 2025, where regional heritage-led brands are leveraging digital channels, influencer marketing for D2C, and quick commerce D2C partnerships to build national and global presence. Investor participation from Peak XV Partners and Fireside Ventures reinforces sustained VC-backed D2C brands activity and strong D2C investor insights into India’s organized ethnic and premium snacking categories.
In the daily digest of D2C news in India, Sweet Karam Coffee’s Series A extension signals continued capital flow into scalable, authenticity-led D2C brands India. As India’s D2C ecosystem evolves, brands that blend regional identity, clean ingredients, omnichannel reach, and strong unit economics are increasingly emerging as top funded D2C brands with long-term potential.
