Homegrown D2C coffee brand Sleepy Owl has raised ₹12 crore (around $1.3 million) in a fresh funding round from a mix of new and existing investors, including the Gauri Khan Family Trust, Optiscape Network Holdings, and Pramod Bhasin.
This marks the company’s first fundraise in over 2.5 years, following its ₹15 crore round in October 2023 led by Rukam Capital and DSG Consumer Partners. Earlier, it had raised $6.5 million in Series A funding in 2021.
The company’s board has approved the issuance of 37,944 Series C2 preference shares at ₹3,162.55 per share to complete the round. Optiscape Network Holdings is leading the tranche with a ₹5 crore investment, followed by Pramod Bhasin with ₹2.5 crore, while the Gauri Khan Family Trust is contributing ₹2 crore.
According to estimates, Sleepy Owl’s valuation will increase by 28% to ₹172 crore post-money, up from ₹134 crore in its previous round.
Founded in 2016 by Ajay Thandi, Arman Sood, and Ashwajeet Singh, the brand offers premium 100% Arabica coffee across formats such as instant coffee, hot and cold brew packs, ready-to-drink beverages, and brewing kits.
Post funding, DSG Consumer Partners remains the largest shareholder with a 35.35% stake, followed by Rukam Capital at 13.29%, while participating investors including Optiscape and Bhasin will hold smaller stakes.
On the financial front, Sleepy Owl reported ₹44 crore revenue in FY25, doubling year-on-year, while reducing losses by 80% to ₹2.1 crore, indicating improved operational efficiency.
The company competes with brands such as Blue Tokai, Rage Coffee, Slay Coffee, Subko Coffee, and abCoffee in India’s growing premium coffee segment.
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