Founders & their story

• Nandini Srivastava
• Rishabh Nigam

Toffee Coffee Roasters specializes in a variety of coffee products, including filter coffee, cold brew coffee, hot brew coffee, and grounded coffee, all sourced from diverse coffee regions globally. Notably, India stands out as one of the top global producers of coffee. One of their signature offerings is whiskey barrel-aged coffee, known for its unique flavour profile. Their products are conveniently packaged in sachets for easy brewing. Simply tear the sachet, anchor it to the cup, and pour hot water, allowing for a brewing time of 2-3 minutes to achieve optimal flavour.

The Indian coffee market boasts a substantial size, ranging between 14k to 15k crores. Despite the dominance of traditional brands, Toffee Coffee Roasters aims to carve out a niche in the specialty coffee segment. Currently, the at-home specialty coffee market in India is less than 1000 crores, with instant coffee holding a significant share of 90%. Toffee Coffee Roasters has a sales split of 60% through their own website and 40% through various marketplaces, showcasing a robust online presence and distribution strategy.

About the company

In early 2019, in Bandra Mumbai, two somewhat disillusioned coffee enthusiasts, weary of the commercial coffee scene and its stale, over-roasted beans, embarked on a mission. Their goal? To introduce a new standard of coffee roasting for those craving the genuine taste of freshly brewed coffee. Armed with a modest 5 kg batch roaster, they made a bold promise: “They pledged to only offer coffee within 48 hours of roasting, ensuring their patrons experience coffee at its absolute peak flavour. They committed to sourcing only the finest, most delectable, and responsibly cultivated beans from around the globe.”

Thus, Toffee Coffee Roasters emerged from the narrow lanes of Bandra, and within a mere three months, it expanded its reach to Phoenix Marketcity Kurla. Now, they cater to coffee aficionados nationwide through their website and various strategic partnerships. Their excellence has been recognized by leading platforms like Zomato and WhatsHot, earning them top accolades in the coffee realm. Their mission is clear: “To facilitate access to exceptional coffee for all who seek it. They are dedicated to refining the concept of freshness and peak flavour, ensuring that people have the opportunity to savour the finest coffee beans from across the globe, each artfully roasted to perfection.”

As they continue to evolve and expand, their values remain steadfast and intrinsic to their ethos. They are committed to ethically sourcing coffee through meticulous steps, roasting in small batches to preserve quality, and fostering connections between individuals and their unique coffee palates.

Revenue

Toffee Coffee Roasters has shown steady growth in sales over the past few fiscal years. In FY 22-23, their sales amounted to 2.3 crores. However, in FY 23-24 (until September), there was a slight decrease in sales to 2.1 crores, resulting in a loss of 10 lakhs. Despite this setback, the company projects a significant increase in sales for the full FY 23-24, estimating between 6 to 6.5 crores.

Notably, in October 2023, sales amounted to 33 lakhs, indicating a promising trajectory. Additionally, the second quarter (Q2) sales for FY 23-24 reached 1.1 crores, indicating a strong performance during that period. Toffee Coffee Roasters offers a range of products at competitive prices. The starting price for 250 grams of coffee is 450 rupees, while the Mysore Nuggets Easy Brew, packaged in 12 sachets, is priced at 550 rupees. The price range for 250 grams of coffee beans varies between 550 to 1500 rupees, catering to different preferences and budgets.

With a gross margin of 62%, Toffee Coffee Roasters maintains healthy profitability. Despite the growth in sales, the company has a modest amount of money in the bank, ranging between 2.5 to 3 lakhs, indicating prudent financial management.

Founders’ Ask 

60 lakhs for 2% equity at the valuation of Rs. 30 crores.

Offers

Ritesh’s offer: 35 lakhs for 2.33% equity at the valuation of Rs. 15 crores and 25 lakhs debt at 10% interest for 3 years.

Final Deal

Ritesh: 35 lakhs for 2.33% equity at the valuation of Rs. 15 crores and 25 lakhs debt at 10% interest for 3 years.