India: USD24 mln fund launched to invest in Indian microbreweries

Optimistic Capital, an Indian investment firm, has launched the country’s first dedicated microbrewery-targeted fund. The INR2 billion (USD23.9 million) fund will provide investors with a unique opportunity to invest in India’s fast-growing microbrewery sector, with a particular emphasis on key hospitality markets such as Bengaluru, Hyderabad and Pune, AsiaBrewersNetwork.com reported on September 27.

The microbrewery fund is designed to exploit the rising profitability of craft beer establishments, and the sector’s overall robust growth. Industry projections forecast that by 2030, the number of microbreweries in India could exceed 1,000: a 300% increase from 2024.

Moreover, in Bengaluru, where there are currently more than 80 microbreweries, most report profit margins above 20%. The city’s improved regulatory environment has also played a facilitatory role by extending operating hours for F&B outlets to 1 a.m. and easing licensing requirements. Minimum space needed for microbreweries has also been reduced from 10,000sq ft to 6,500sq ft, making it cheaper for new entrants.

“The microbrewery sector in India is witnessing significant growth, driven by the increasing demand for craft beers and experiential dining. With more tier I and tier II cities experiencing this shift, our fund is positioned to leverage the opportunities in this growing sector,” says Jeff Jose, General Partner at Optimistic Capital.

The fund is backed by four founding partners, each bringing diverse expertise. Karthik Chandrasekaran is co-founder of URU Brewpark, GCBC and Record Room in Bengaluru, and has extensive experience in the microbrewery space. Jeff Jose has a background in sales and marketing at the Kellogg Company in Africa and has advised the CXOs of Burger King and Popeyes in the APAC region. Varun Krishnan has corporate finance and project management experience at Siemens, and has managed large-scale microbreweries, focusing on financial strategy. Finally, Edwin Daniel has led revenue at Branch International, a US$600 million micro-bank.

07 October, 2024