Optimistic Capital, a Bengaluru-based investment firm founded by ISB alumni, has launched India’s first microbrewery-focused fund worth Rs 200 crore. The fund aims to capitalise on the burgeoning craft beer industry, and is focusing on markets such as Bengaluru, Hyderabad and Pune.
India’s microbrewery sector is expected to triple by 2030, with over 1,000 microbreweries projected, up from 300 in 2024. Bengaluru alone has over 80 microbreweries, many of which report profit margins above 20 percent. Additionally, international alcohol conglomerates are actively investing in and developing local microbreweries in India.
Also, in Bengaluru, the state government has extended the operating hours of food and beverage establishments till 1 am and simplified licensing norms. Also, the minimum space requirement for microbreweries has been reduced from 10,000 sq ft to 6,500 sq ft.
Jeff Jose, General Partner at Optimistic Capital, said: “The microbrewery sector in India is experiencing revolutionary growth on the back of rising demand for craft beers and food experiences. With more and more Tier 1 and Tier 2 cities experiencing this consumer shift, our fund is well positioned to capitalize on this growth opportunity.”
“Microbreweries are different from restaurants, bars, pubs and lounges in that they offer an inclusive environment that appeals to all generations, regardless of age or socioeconomic status. The ample space requirements for beer production, coupled with the flexibility to modify the cuisine and craft beers periodically to accommodate changing customer preferences, ensures the longevity of the microbrewery model versus other traditional food and beverage formats,” said Karthik Chandrasekaran, General Partner at Optimistic Capital.
Karthik also co-founded URU Brewpark, GCBC and Record Room in Bengaluru. The fund marks a significant step towards expanding India’s microbrewery ecosystem and offers investors an opportunity to participate in the craft beer revolution, the investment firm said.
First published: September 24, 2024 | 00:11 IS
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