Optimistic Capital Floats INR 200 Cr Fund To Back Microbreweries

Bengaluru-based alternative investment firm Optimistic Capital has rolled out its maiden INR 200 Cr (around $23.9 Mn ) fund to invest in India’s microbrewery space.

This fund will focus on supporting innovative microbreweries, providing them with the capital and expertise to scale and thrive in the craft beer market, the AIF said in a statement.

The fund aims to capitalise on the profitability of microbreweries with a focus on fueling markets, including Bengaluru, Hyderabad and Pune.

Bengaluru has over 80 microbreweries, with the vast majority reporting a profit margin exceeding 20%, the company added. 

Founded by Karthik Chandrasekaran, Jeff Jose, Varun Krishnan and Edwin Daniel, Optimistic Capital is an alternative investment fund that uses an owner-operator approach by investing capital while actively participating in the management and growth of its portfolio companies. 

The fund is backed by four founding partners from the Indian School of Business and graduate business school INSEAD. These individuals, together bring expertise in brewing, finance, and marketing within the microbrewery sector.

Karthik Chandrasekaran is the cofounder of URU Brewpark, a notable microbrewery in Bengaluru that combines a park setting with craft beer. 

Varun Krishnan has managed large-format microbreweries, focusing on financial planning and strategy, drawing from his international experience in project management and corporate finance.

Jeff Jose has extensive experience in sales and marketing, previously working with Kellogg Company and advising major brands like Burger King and Popeyes in the APAC region.

Edwin Daniel led revenue at Branch International, a profitable micro-bank, and has been involved in successful exits and turnarounds in his career.

“The microbrewery sector in India is witnessing revolutionary growth on the back of rising consumer demand for craft beers and experiential dining. With more tier 1 and tier 2 cities seeing this consumption shift, our fund is well poised to leverage this growth opportunity,”  Optimistic Capital’s General Partner Karthik Chandrasekaran. 

The development comes on the back of Karnata’s state government extending the operational hours for F&B outlets to 1 AM while easing licensing requirements. The company said that the government has also reduced the required space for installing microbreweries from 10,000 sq. ft. to 6,500 sq. ft. to encourage more entrants into the segment. 

This fund launch comes at the heart of the rapidly expanding microbrewery market in India, driven by growing consumer demand. 

As a result, startups in the likes of BIra 91, Moonshine Meadery, White Owl Brewery, Brewbot, The Rockclimber, and Sula Vineyards, among others have made their mark in the startup landscape. 

According to a report, India’s beer market size reached INR 414.7 Bn in 2023 and expects to surpass INR 781.2 Bn market by 2032, exhibiting a growth rate (CAGR) of 7.1% during 2024-2032.