Sweet Karam Coffee Secures $8 Mn Funds from Peak XV, Fireside Ventures

South India food brand Sweet Karam Coffee has raised $8 million in Series A round led by Peak XV Partners along with its existing investor Fireside Ventures. The start-up will fuel expansion across omnichannel distribution, accelerate new product development, and bolster its technology-driven supply chain capabilities.

In 2015, the food start-up was founded by Anand Bharadwaj, Nalini Parthiban, Srivatsan Sundararaman, and Veera Raghavan. Sweet Karam Coffee sells various south Indian sweets, filter coffee, condiments, ghee, and snacks free from palm oil and preservatives, it said in an official statement.

The start-up sells its products via its website, online marketplaces, and quick commerce platforms across 32 countries. It has grown 4x in revenue over the past 12 months, and is projected to grow another 2.5x in next year.

Sweet Karam Coffee CEO and cofounder Nalini said, “This is an exciting time to build. Quick commerce is bridging distribution like never before, and we are seeing a beautiful cross-pollination of cultures. Our products are now loved not just in the South, but across the country.”

“We are particularly proud to have led the charge against palm oil from Day 1. Everything we create is something my Janaki Paati would make at home --- products I am comfortable giving my own daughter,” he added.

The start-up has appointed Nandhitha Indermohan, former Unilever and ISB alumnus, as its chief operating officer. It claimed that Indermohan will enhance the food brand’s operational and strategic capabilities.

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“With Nandhitha joining us, we’re doubling down on execution strength. We are building a brand rooted in culture, powered by technology, and loved across geographies,” said Nalini.

On the other hand, Peak XV’s Abishek Mohan said the South Indian snacks and sweets market currently stands at Rs 25,000 crore, but it is undergoing a significant transformation. “The shift from unorganized to organized players, rising demand for better-for-you products, and the rapid expansion of modern distribution channels present a powerful opportunity for brands like Sweet Karam Coffee,” Mohan added.

“Fireside invested in Sweet Karam Coffee for the first time in 2023. Since then we have invested twice more - persuaded by the remarkable all round development of the business. Nalini, Anand, Raghav, Sri and the team have shown strong focus in creating authentic tasting clean label products, terrific execution ability in both e-commerce and offline channels and compelling brand storytelling,” said Kannan Sitaram from Fireside Ventures.

The start-up stated that Veda Corporate Advisors also played a key role in this fundraising process as the brand's exclusive financial advisor.