Sweet Karam Coffee raises $8M from Peak XV, Fireside Ventures

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Chennai-based D2C snacking brand Sweet Karam Coffee raises $8M in its Series A funding round led by Peak XV Partners, with participation from existing investor Fireside Ventures. The startup plans to utilize this capital for product expansion and geographical growth. Founded in 2015 by Anand Bharadwaj, Nalini Parthiban, Srivatsan Sundararaman, and Veera Raghavan, the company specializes in South Indian sweets, snacks, filter coffee, condiments, and ghee.

The funding follows a remarkable 558% increase in revenue in FY24, climbing from INR 1.7 Cr to INR 11.2 Cr. Losses, however, surged 10X to INR 7.58 Cr. However, in FY25, the brand has already achieved 4.5X revenue growth while improving operational efficiency and cutting losses. The company recently appointed Nandhitha Indermohan, a former Unilever executive, as COO to support its expansion.

The increasing demand for healthy, preservative-free snacks has fueled the rise of D2C brands like Sweet Karam Coffee. Competitors such as Beyond Snack and The Whole Truth Food have also secured substantial funding in 2024. The Indian D2C market, expected to reach $300B by 2030, continues to attract investor interest.

1. Understanding Sweet Karam Coffee’s Business Model

1.1 How Sweet Karam Coffee Operates

Sweet Karam Coffee follows a direct-to-consumer (D2C) model, selling its products through its website, e-commerce platforms, and quick-commerce services. The brand serves customers across 32 countries and has gained popularity for its authentic South Indian flavors, preservative-free products, and sustainable packaging.

1.2 Revenue Model and Growth

The brand primarily generates revenue through online sales. The increasing preference for healthy, chemical-free snacking has significantly contributed to its growth. From FY23 to FY24, revenue skyrocketed by 558%, reaching INR 11.2 Cr. Despite a surge in losses to INR 7.58 Cr, the company enhanced operational efficiency and cut costs in FY25, achieving a 4.5X revenue increase.

1.3 Product Portfolio and Unique Selling Proposition

The brand’s core offerings include traditional South Indian sweets, snacks, filter coffee, condiments, and ghee. Unlike many competitors, it ensures zero palm oil usage and no preservatives, catering to the rising demand for authentic, healthy snacks.

2. Sweet Karam Coffee raises $8M

2.1 Previous Funding Rounds

Sweet Karam Coffee previously raised $1.5M in 2022 from Fireside Ventures. The latest fund of $8M Series A round that Sweet Karam Coffee raises , led by Peak XV Partners, marks a major milestone in the startup’s growth trajectory.

2.2 Utilization of Funds

With fresh capital, the company aims to:

1. Expand its product range to include more healthy snacking options.
2. Strengthen its supply chain and production capacity to meet increasing demand.
3. Increase its geographical footprint both in India and internationally.
4. Enhance marketing and branding efforts to drive consumer engagement.
5. Leverage quick-commerce and D2C channels for faster deliveries.

3. Industry Trends: The Rise of Healthy Snacking in India

3.1 Growing Consumer Preference for Healthy Alternatives

Post-pandemic, Indian consumers are increasingly opting for chemical-free, preservative-free snacks. The market is shifting from fried and high-calorie snacks to traditional, nutrient-rich alternatives.

3.2 Competitive Landscape

Several Indian D2C brands have emerged in this space:

• Beyond Snack raised $8.3M in January 2024.
• The Whole Truth Food secured $15M in 2024.
• Super You, backed by Ranveer Singh, recently received investment from Zerodha’s Kamath Brothers.

3.3 Market Potential and Investor Interest

India’s D2C market is projected to reach $300B by 2030, driven by rising disposable income, increasing digital adoption, and a shift toward healthier food choices. Investors are showing strong interest in brands offering authentic, preservative-free snacks.

4. Leadership and Future Prospects

4.1 New Leadership to Drive Growth

To strengthen operations, Sweet Karam Coffee appointed Nandhitha Indermohan as COO. With 15+ years at Unilever, she brings expertise in supply chain management and operations scaling.

4.2 Expansion Roadmap

Sweet Karam Coffee aims to penetrate deeper into Tier-2 and Tier-3 cities, expand its global customer base, and establish strategic partnerships to scale faster.

5. Learning for Startups and Entrepreneurs

5.1 The Importance of Strong Brand Identity

Sweet Karam Coffee succeeded because of its authenticity, focus on traditional recipes, and strong brand positioning. Startups should build a clear, unique identity to stand out.

5.2 Scaling Without Compromising Quality

Despite rapid growth, the brand maintains high product quality and consumer trust. Founders should prioritize customer satisfaction over aggressive expansion.

5.3 Leveraging Quick-Commerce and E-Commerce

D2C brands must diversify sales channels by using online marketplaces, direct sales, and quick-commerce services.

5.4 Data-Driven Decision-Making

Sweet Karam Coffee’s data-driven approach in expanding product lines and optimizing operations has played a key role in its success.

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