The coffee brand Sleepy Owl has raised $6.5 million in a Series A funding round led by existing investor Rukam Capital and Consumer Partners. The funding will be used to expand the core team of the direct-to-consumer brand founded in 2016. The company will also widen its distribution network across India and firm up its marketing initiatives.

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Founded in 2016, Sleepy Owl sells cold brew packs, hot brew bags, ready-to-drink cold brew bottles, ground coffee, brew box suites for in-home and on-the-go consumption. The company was co-founded by Ajai Thandi, Arman Sood, and Ashwajeet Singh. The brand started online, has since its inception, moved to large format modern trade stores to initiate consumer trials.

Internet-first brands have favoured consumers and investors as they fill a vacuum within the mid-to-premium packaged foods and the beauty and personal care market. The pandemic has also ushered in demand for products that can replicate out-of-home food and beverage experiences in the home.

Ajai Thandi, co-founder, Sleepy Owl, said the pandemic helped the company re-prioritize. “We were agile and quick on problem-solving and were able to get back on track with higher numbers…we plan to utilize the funds to go deeper into our existing retail markets across India and add as we grow,” Thandi said.