Sweet Karam Coffee, a Chennai-based brand specializing in traditional South Indian snacks and sweets, has raised $8 million in Series A funding from Peak XV Partners and Fireside Ventures. Founded in 2015 by Anand Bharadwaj and Nalini Parthiban, the company offers products free from palm oil and preservatives, catering to customers across 32 countries.

This investment follows a previous $1.5 million funding from Fireside Ventures in October 2023, which supported offline expansion. The new funds will be used to enhance distribution through omnichannel networks, develop new products, and bolster technology-driven supply chain capabilities. 

Sweet Karam Coffee has grown its revenue four-fold over the past year and expects to grow another 2.5 times in the coming year.

The company has also appointed Nandhitha Indermohan, a former Unilever executive, as its Chief Operating Officer to boost operations. This strategic move positions Sweet Karam Coffee for further growth, leveraging the booming quick commerce sector and expanding its presence across India and globally.

Foxconn’s Indian subsidiary, Bharat FIH, is shifting its focus to servicing Apple’s supply chain, aligning with efforts to expand manufacturing in India and reduce dependence on China. The company has restructured its board and pivoted away from competing in the electronics manufacturing services (EMS) space. It now aims to support Apple suppliers like Foxconn Hon Hai, Pegatron, and Wistron (now Tata Electronics) by leveraging its expertise in equipment servicing at facilities in Chennai and Bengaluru.

This strategic shift follows challenges such as reduced orders from Xiaomi and failure to qualify for India’s Production Linked Incentive (PLI) scheme. Bharat FIH plans to utilize its infrastructure and workforce to regain momentum by focusing on Apple-related services.

Meanwhile, Foxconn is ramping up iPhone production in India, aiming to double output from 12 million units in 2024 to 25–30 million units by 2025. Supported by favorable government policies, the expansion will cater to both domestic demand and exports. 

Apple has also increased its manufacturing presence in India, achieving record exports of ₹1 lakh crore ($12 billion) in 2024 and exploring local production of other products like iPads and MacBooks.

This transformation highlights India’s growing role in Apple’s global supply chain as Foxconn and Bharat FIH strengthen their operations in the country.  

Zepto, the Bengaluru-based quick commerce startup, is preparing for its initial public offering (IPO) by facilitating a secondary share sale worth up to $250 million. This strategic move aims to increase Indian investor ownership from approximately 33% to nearly 50% before the anticipated public listing later this year or early next year.

Funding and Investor Details

The secondary sale will involve private equity firms, including Motilal Oswal Financial Services and Edelweiss Financial Services, allowing existing investors and employees to liquidate their shares. Although Zepto will not raise additional capital through this transaction, it is expected to execute the sale at a valuation of just over $5 billion, consistent with its last funding round in November 2024.

Objectives Behind the Sale

The primary goal of this secondary share sale is to enhance domestic ownership in Zepto, aligning with regulatory preferences and making the IPO more attractive to local institutional investors. Co-founders Aadit Palicha and Kaivalya Vohra currently hold about 20% of the company, and increasing Indian shareholder stakes is seen as a way to strengthen governance and influence over the company’s future direction.

Market Context

Zepto operates in India’s competitive grocery delivery market, facing challenges from established players like Amazon India, Swiggy, Zomato, and BigBasket. Founded in 2021 by Palicha and Vohra after they dropped out of Stanford University, Zepto has quickly gained traction in the quick commerce sector.

Conclusion

As Zepto approaches its IPO, this secondary share sale represents a crucial step in solidifying its position in the Indian market. By boosting domestic investor participation, Zepto aims to enhance its credibility and appeal as it prepares for a public listing amidst a wave of Indian startups entering the stock market.