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Analysis · Commerce & Consumer Brands

Sleepy Owl Coffee's journey from 2016 to present

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Date
Company
Sleepy Owl Coffee
What it does
At-home coffee brand
Kind
Analysis
Based in
Delhi
Founded
2016
Sector
Commerce & Consumer Brands

What they do

Sleepy Owl Coffee is a Delhi-based at-home coffee brand founded in 2016

What happened

The company has raised $8M from DSG Consumer Partners and Rukam Capital

Why it matters

It competes with Nescafé, Bru and Tata Coffee in the Indian coffee market

The details

  • Sleepy Owl Coffee was founded in 2016 by Arman Sood, Ashwajeet Singh and Ajai Thandi.
  • The company started with a ready-to-drink Cold Brew Box as its first product.
  • It now sells cold brew packets, hot brew bags, instant coffee, cold coffee cans, South Indian filter coffee, ground coffee, coffee merchandise, protein coffee (Profee) and RTD Matcha.
  • The brand is available in over 15,000 retail stores across India.
  • Sales channels include online marketplaces (Amazon, Flipkart), quick commerce (Blinkit, Swiggy Instamart, Zepto) and its own D2C website.
  • Revenue split is 55% from dry coffee powder and 45% from other coffee beverages.
  • Channel-wise, 65% of revenue comes from online and 35% from brick-and-mortar stores.

The bigger picture

  • The founders identified a market gap between expensive coffee chains like Starbucks and the lack of variety in instant coffee brands.
  • The first 1,000 customers acted as brand ambassadors through word-of-mouth.
  • Sleepy Owl competes with established players like Nescafé (Nestlé), Bru (Hindustan Unilever) and Tata Coffee.

About the business

  • Sleepy Owl is a Delhi-based at-home coffee brand founded in 2016.
  • Its initial product was a ready-to-drink Cold Brew Box.
  • Current product range includes cold brew packets, hot brew bags, instant coffee, cold coffee cans, South Indian filter coffee, ground coffee, coffee merchandise, protein coffee (Profee) and RTD Matcha.
  • Coffee beans are high-quality Arabica sourced from single-origin Grade A plantations above 5,300 ft in and around Chikmagalur, Karnataka.
  • The company has an in-house R&D team; coffee is roasted in-house in small batches with no artificial flavours or preservatives.
  • Flagship product is cold brew with flavours like mocha, cinnamon, hazelnut, caramel.
  • B2B partnerships supply hotels, restaurants, cafés, corporate houses and airlines.
  • Marketing is disruptive, via F&B and corporate events, and collaborations (e.g., Goa Brewing for breakfast stouts and coffee-based gin).

The deal

Type
other

Investors

Founders

  • Arman Sood, Co-founder
  • Ashwajeet Singh, Co-founder
  • Ajai Thandi, Co-founder

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