Toffee Coffee Roasters Raises ₹5 Cr in Pre-Series A from IPV to Scale Quick-Commerce Push

Bengaluru-based specialty coffee brand Toffee Coffee Roasters said on Thursday it has raised ₹5 crore in a Pre-Series A round led by Inflection Point Ventures (IPV), with participation from 66 Bridge Partners, Abhijit Vemuganti and Invesst.

The capital will be used to scale the company’s presence on quick-commerce platforms, expand production and deepen its product roadmap as the firm targets a market share of 5–8% in the online coffee category and ₹60–80 crore in annual recurring revenue.

Deployment Plan

About 60% of the funds will be allocated to working capital to support rapid order growth and distribution, the company said. Roughly 10–15% will go into backend roastery upgrades, 10% toward improved packaging, and the remaining 10–15% earmarked for new product development.

Toffee said it currently serves more than 150,000 regular customers, produces 5 tonnes of coffee monthly (around 40,000 units consumed each month) and aims to scale output to 50 tonnes a month to reach broader consumer penetration.

IPV, which has invested over ₹800 crore across 250+ startups, led the round. Mitesh Shah, IPV’s co-founder, said India’s at-home specialty coffee market remains under-penetrated and Toffee “bridges the gap” between mass instant coffee and expensive café brews. The brand, which appeared on Shark Tank India, also counts entrepreneur Ritesh Agarwal among its backers.

Founders’ View

Co-founders Rishabh Nigam and Nandini Shrivastava said the raise will help Toffee expand distribution on fast commerce channels and build a mass-premium brand that reaches tier-2 and tier-3 consumers as well as metros. “Our aim is to make high-quality artisanal coffee accessible at home while scaling responsibly across formats,” Shrivastava said.

India’s coffee market, estimated at roughly $2 billion, is rapidly premiumising even as at-home consumption remains dominated by instant blends. Analysts and investors point to accelerating demand for roasted and ground coffee, cold brews and capsules; Toffee’s strategy is to capture a meaningful slice of online and quick-commerce sales by combining in-house blending expertise (including Q-graders on staff), a lean supply chain and focused product innovation.

Toffee plans to use the fresh capital to deepen partnerships with quick-commerce platforms, push toward its ₹60–80 crore ARR goal and scale operational capacity to meet growing consumer demand.