Toffee Coffee Roasters, a specialty coffee brand that’s quickly making a name for itself in India’s booming direct-to-consumer (D2C) market, just landed ₹5 crore in a pre-Series A funding round. Investment firm IPV led the round, with contributions from 66 bridge partners, Abhijit Vemuganti, and Invesst.
This investment shows that people are becoming more confident in D2C brands in India, especially those that are changing the game when it comes to high-quality experiences in the food and beverage sector. Toffee Coffee Roasters, based in Mumbai, has already gained recognition on Shark Tank India and has the backing of Ritesh Agarwal. It’s now standing out as one of the D2C startups that’s bringing fresh ideas to India’s premium coffee scene.
Back in 2020, Toffee Coffee Roasters shifted its focus from a café-based business to a D2C model that prioritizes delivery across India. Since then, it’s become a major player in the D2C world, thanks to its consistent performance and innovative supply chain. The brand now serves over 200,000 customers through online marketplaces, its own website, and quick commerce channels. All of this happens at its 10,000 sq ft roastery, where they handle everything from sourcing and processing to roasting and packaging under one roof. This streamlined, direct approach allows them to offer better prices, higher quality, and greater transparency – all things that are important to today’s D2C businesses and customers.
The new funding will allow Toffee Coffee Roasters to improve its roastery, packaging, and new product development. The goal is to strengthen its position in the D2C market and build a strong foundation for long-term growth. With India’s coffee market currently valued at $2 billion and expected to grow by over 20% each year, Toffee Coffee Roasters is aiming to be one of the fastest-growing D2C brands in the beverage category. The founders are focused on finding the best coffees from around the world and creating a supply chain that handles everything from start to finish. This aligns perfectly with what D2C consumers in India are looking for: transparency about where their coffee comes from, freshness, and gourmet quality.
Toffee Coffee Roasters is currently producing over 5 tonnes of coffee each month, with customers consuming over 40,000 units, which translates to 300,000–400,000 cups of coffee brewed at home across the country. With the backing of venture capital, the startup now wants to increase production to 50 tonnes per month. If they can do that, they expect to generate ₹8–10 crore in monthly revenue and serve around 800,000–1 million customers. This would greatly improve their position among the top D2C brands and strengthen their already sizable 1–2% share of India’s total coffee market.
This funding round shows that the D2C model is helping to boost India’s premium beverage culture and support new brands that combine great products with online distribution. As trends point to premium products, at-home consumption, and supply chain control as key factors for growth, Toffee Coffee Roasters is ready to grow its brand as a successful D2C business built on craftsmanship, tech, and a unique approach to the market.
With more and more investors looking at the D2C market and its increasing potential, Toffee Coffee Roasters is proving that it’s possible to build a globally competitive coffee business from India. Starting as a café in Mumbai, the brand has become a national D2C success story. Now, it’s entering its next phase of growth with fresh funding, a stronger supply chain, and a vision that aligns with the future.
