Kaapi Machines raises Rs 50 crore from Sedna HoReCa
The company sells the machines behind India's cafe boom, and the money is going into manufacturing, warehousing and service rather than storefronts.
- Rs 50 crore equity investment from Sedna HoReCa, a PE backed B2B hospitality solutions provider.
- Distributes La Marzocco, Mahlkonig, Rancilio and Probat across India.
- Also runs barista training, cafe consulting, maintenance and the Something's Brewing ecommerce platform.
- Funds go to manufacturing, technology, warehousing and service capacity.
Kaapi Machines has raised Rs 50 crore in equity from Sedna HoReCa, a private equity backed B2B hospitality solutions provider. The company, led by Abhinav Mathur, supplies coffee equipment and services across India.
It distributes brands including La Marzocco, Mahlkonig, Rancilio and Probat, covering automatic and semi automatic espresso machines, commercial blenders, roasters and grinders. Alongside equipment it runs barista training, cafe consulting and maintenance, and operates the Something’s Brewing ecommerce platform. Customers include large cafe chains, quick service restaurants, specialty roasters, hotels, retailers and corporates.
The capital goes into product range, manufacturing, technology infrastructure, warehousing and service capability, with both companies also looking at adjacent categories for the existing customer base.
The read for operators is about where the margin sits in a consumer boom. India’s specialty coffee growth is visible at the counter, but the businesses selling equipment, service contracts and training to every one of those counters are capturing it without carrying the risk of any single cafe working.
Note the service line specifically. Equipment is a one time sale with a long replacement cycle. Maintenance, training and consumables are recurring, and that is usually what makes a business like this fundable.
Zane’s analysis draws on original reporting by Entrackr. Read the original report.