Rakesh Kapoor’s 12 Flags Group Makes Maiden Investment in Blue Tokai Coffee

12 Flags Group, a consumer business-focussed fund floated by Reckitt Benckiser’s former global chief executive officer Rakesh Kapoor, has backed specialty coffee retailer Blue Tokai Coffee Roasters, marking its maiden investment in India.

However, the financial terms of the transactions were not disclosed.

“Blue Tokai is a pioneer in India’s specialty coffee scene, elevating the coffee experience for our nation. Their commitment to bringing exceptional specialty coffee and a thriving cafe culture aligns with our vision in this category,” 12 Flags Group said in a LinkedIn post.

Kapoor set up 12 Flags Group in October 2022 after his 32-year stint with Reckitt Benckiser. 

Last year, it launched 12 Flags India Consumer Fund. The fund, which will focus on sectors like consumer health, wellness, pet and companion animal, nutrition and restaurants, will invest in consumer focused business.

Kapoor said, “All big things come from small beginnings. The seed of every habit is a single, tiny decision. But as that decision is repeated, a habit sprouts and grows stronger. Roots entrench themselves and branches grow.” 

Meanwhile, this marks second investment for Blue Tokai after it raised $30 Mn in its Series B funding round in January last year. Following that, actress Deepika Padukone backed the startup via her investment entity Ka Enterprises in September.

The specialty coffee brand was founded in 2013 by Matt Chitharanjan, Namrata Asthana and Shivam Shahi in 2013. It operates 4 roasteries and over 80 physical outlets in Delhi NCR, Mumbai, Bangalore, Hyderabad, Kolkata, Chandigarh, Mohali and Pune, among others, in India. It also has a presence in Tokyo, Japan. 

On the B2B front, Blue Tokai also has partnerships with different retail outlets across India, luxury hotels and restaurants, top corporates and co-working spaces, among others. 

Chitharanjan said, “We’re excited to announce that 12 Flags has joined our cap table. They bring extensive experience in building brands and distribution and we look forward to having them be part of our journey in creating one of India’s leading coffee and bakery companies.”

With this, the startup has raised $38 Mn in total funding so far. It competes against the likes of Rage Coffee and Third Wave Coffee Roasters in the specialty coffee market.