By Business Connect Magazine
Chennai-based direct-to-consumer (D2C) snacking brand Sweet Karam Coffee has taken a significant step forward in its mission to bring authentic South Indian flavors to the world, securing $8 million in a Series A funding round. Led by Peak XV Partners, with continued support from existing investor Fireside Ventures, this capital infusion marks a pivotal moment for the company as it aims to scale its omnichannel presence, innovate its product lineup, and bolster its supply chain. The announcement, made on April 2, 2025, underscores the growing investor confidence in India’s D2C food and beverage sector and Sweet Karam Coffee’s unique positioning within it.
Sweet Karam Coffee Secures $8M Series A Funding to Fuel South Indian Snacking Revolution
A Taste of Tradition Meets Modern Ambition
Founded in 2015 by Anand Bharadwaj, Nalini Parthiban, Srivatsan Sundararaman, and Veera Raghavan, Sweet Karam Coffee has carved a niche by offering a range of South Indian sweets, snacks, filter coffee blends, and ready-to-eat meal mixes—all crafted without palm oil or preservatives. The brand’s commitment to authenticity, rooted in recipes reminiscent of grandmother’s kitchens, has resonated with consumers across India and in 32 countries worldwide. From crunchy murukku to indulgent jaggery-based sweets, Sweet Karam Coffee blends tradition with a modern, health-conscious twist, appealing to a global audience seeking clean-label, culturally rich snacking options.
This latest funding comes nearly two years after the company raised $1.5 million from Fireside Ventures in October 2023, a round that fueled its initial offline expansion and product diversification. Since then, Sweet Karam Coffee has reported a staggering 558% increase in operating revenue, reaching ₹11.2 crore in FY24, up from ₹1.7 crore in FY23. However, the company’s losses also widened to ₹7.58 crore in FY24 from ₹77 lakh the previous year, reflecting its aggressive investments in growth and market penetration.
Strategic Plans for Growth
The $8 million injection will power Sweet Karam Coffee’s next phase of expansion. The company plans to strengthen its omnichannel strategy, building on its robust online presence—via its website, e-commerce marketplaces, and quick-commerce platforms—while deepening its footprint in offline retail. “Quick commerce is bridging distribution like never before, and we’re seeing a beautiful cross-pollination of cultures—our products are now loved not just in the South, but across the country,” said Nalini Parthiban, CEO and Co-Founder. The brand aims to leverage this momentum to make South Indian snacking a household name nationwide.
New product development is also high on the agenda. With an existing portfolio spanning Tamil Nadu and Kerala delicacies, Sweet Karam Coffee intends to introduce Karnataka and Andhra Pradesh specialties, further diversifying its offerings. The company’s focus on millet-based snacks and preservative-free options aligns with rising consumer demand for healthier alternatives, a trend accelerated by the post-pandemic shift toward mindful eating.
Enhancing its supply chain is another key priority. By fortifying relationships with its ecosystem of Tamil Nadu farmers and home chefs—many of whom are women entrepreneurs—Sweet Karam Coffee aims to ensure scalability without compromising on quality or sustainability. The recent appointment of former Unilever executive Nandhitha Indermohan as Chief Operating Officer signals the company’s intent to professionalize operations and drive efficiency as it scales.
Investor Confidence in a Booming Market
The South Indian snacks and sweets market, valued at over ₹25,000 crore, is ripe for disruption, with a shift from unorganized to organized players and growing demand for better-for-you products.
“The rapid expansion of modern distribution channels presents a powerful opportunity for brands like Sweet Karam Coffee,” said Abishek Mohan of Peak XV Partners. “Nalini and Anand are deeply authentic, mission-driven founders, and we’re thrilled to be part of their journey.”
Fireside Ventures, which has backed the company since 2023, doubled down on its investment in this round. “The team has shown remarkable focus in creating authentic, clean-label products and terrific execution across e-commerce and offline channels,” noted Kannan Sitaram, Partner at Fireside Ventures. This vote of confidence aligns with a broader wave of investor interest in India’s D2C snacking space, evidenced by recent funding rounds for competitors like Beyond Snack, which raised $8.3 million in January 2025.
Latest Updates and Future Outlook
As of April 2, 2025, Sweet Karam Coffee is gearing up for a busy year. The company has hinted at launching its first physical retail stores in Chennai by mid-2025, with plans to expand to other metros like Bengaluru and Hyderabad shortly after. Its global reach, already spanning 32 countries, is set to grow further, targeting the South Indian diaspora in the US, UK, and Middle East with enhanced logistics and localized marketing.
Financially, the company remains on an upward trajectory despite its widened losses, a common trade-off for D2C brands in hyper-growth mode. With a valuation of $12.5 million as of September 2024 (per Tracxn), Sweet Karam Coffee is positioning itself as a global ambassador for South Indian culinary heritage. “We’re particularly proud to have led the charge against palm oil from Day 1,” Nalini added, emphasizing the brand’s commitment to sustainability and health.
Industry Context
India’s D2C food and beverage sector is witnessing unprecedented growth, fueled by rising internet penetration, disposable incomes, and a shift toward convenience-driven consumption. The success of brands like Sweet Karam Coffee highlights the potential for regional flavors to gain national and international traction. As the Indian real estate and consumer goods markets evolve—projected to hit a trillion-dollar valuation by 2030—companies blending tradition with innovation are well-placed to lead the charge.
Conclusion
Sweet Karam Coffee’s $8 million Series A funding is more than just a financial milestone—it’s a testament to the power of authenticity, resilience, and strategic vision. As the brand scales its operations, introduces new products, and strengthens its supply chain, it is poised to redefine the snacking landscape, one South Indian delicacy at a time. With Peak XV Partners and Fireside Ventures in its corner, Sweet Karam Coffee is on track to become a global name, proving that good food, rooted in tradition, can indeed make a lot of noise.
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