Optimistic Capital Launches Rs 200 Cr Fund to Boost India's Microbrewery Sector

Optimistic Capital, an Indian investment firm founded by ISB alumni, has introduced the country's first Rs 200 crore microbrewery-focused fund. The fund aims to provide investors with a unique opportunity to enter the growing microbrewery sector, focusing on key hospitality markets such as Bengaluru, Hyderabad, and Pune.

The microbrewery fund is designed to capitalize on the rising profitability of craft beer establishments and the sector’s overall growth. Industry projections indicate that by 2030, the number of microbreweries in India could exceed 1,000, marking a threefold increase from 2024. In Bengaluru, where there are currently over 80 microbreweries, most report profit margins above 20 percent. Furthermore, international alcohol companies are actively investing in and partnering with local microbreweries to expand their presence in the Indian market.

Bengaluru's regulatory environment has also played a role in the sector's growth, with the government extending operating hours for F&B outlets to 1 a.m. and easing licensing requirements. The minimum space needed for microbreweries has been reduced from 10,000 sq. ft. to 6,500 sq. ft., making it easier for new entrants to join the industry.

Jeff Jose, General Partner at Optimistic Capital said, "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."

Karthik Chandrasekaran, General Partner at Optimistic Capital and Co-Founder of several microbreweries added, "Microbreweries offer a unique environment that caters to a wide range of consumers, regardless of age or socio-economic background. The larger space required for beer production, combined with the flexibility to adapt menus and craft beers, ensures the long-term viability of the microbrewery model compared to traditional F&B formats."

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

The Rs 200 crore fund represents a significant step for Optimistic Capital in advancing India’s microbrewery sector within the hospitality industry, tapping into the increasing demand for craft beer and diverse dining experiences.