Rakesh Kapoor’s consumer business-focused fund 12 Flags Group has made its first investment in India by financing specialty coffee firm Blue Tokai Coffee Roasters. While the particular details of the investments have not been released, both parties have posted on LinkedIn to confirm the development. The former worldwide CEO of Reckitt Benckiser, Kapoor, founded 12 Flags Group in 2022, and in 2023 he introduced the 12 Flags India Consumer Fund.
12 Flags Group, a consumer-focused fund founded by Reckitt Benckiser’s former global CEO Rakesh Kapoor, has invested in specialty coffee shop Blue Tokai Coffee Roasters, marking its first investment in India.
However, the financial details of the transactions were not released.
“Blue Tokai is a pioneer in India’s specialty coffee market, transforming the coffee experience for our country. Their commitment to providing outstanding specialty coffee and a strong cafe culture is consistent with our aim for this category,” 12 Flags Group stated in a LinkedIn post.
Kapoor founded 12 Flags Group in October 2022, following a 32-year stint at Reckitt Benckiser.
It debuted at the 12 Flags India Consumer Fund the previous year. The fund will invest in consumer-oriented businesses in categories such as consumer health and wellness, pet and companion animal nutrition, and restaurants.
According to Kapoor, “All big things start small.” Every habit begins with a single, small decision. But as that decision is repeated, a habit develops and becomes stronger. “Roots establish themselves, and branches grow.”
Blue Tokai has now raised $30 million in its Series B funding round since January of last year, making this its second investment. Deepika Padukone then supported the venture through her investment firm, Ka Enterprises, in September.
Matt Chitharanjan, Namrata Asthana, and Shivam Shahi established the specialty coffee company in 2013. It has four roasteries and over 80 physical stores across India, including Delhi NCR, Mumbai, Bangalore, Hyderabad, Kolkata, Chandigarh, Mohali, and Pune. It also maintains a presence in Tokyo, Japan.
Blue Tokai also offers business-to-business agreements with various retail locations across India, premium hotels and restaurants, major corporations, and co-working spaces, among others.
Chitharanjan stated, “We’re excited to announce that 12 Flags has joined our cap table.” They offer vast experience in brand development and distribution, and we are excited to have them join us on our path to create one of India’s best coffee and bakery enterprises.”
This brings the startup’s total investment to $38 million. It competes with Rage Coffee and Third Wave Coffee Roasters in the specialty coffee sector.
