Bengaluru, 24 September 2024: Optimistic Capital, a homegrown investment firm founded by ISB alumni, has announced the launch of India’s first-of-its-kind microbreweries-focused fund worth INR 200 crore. The fund is an exclusive opportunity for investors to tap into the burgeoning microbrewery sector in India, focusing on key markets including Bengaluru, Hyderabad, and Pune.

The fund is devised to capitalize on the profitability of microbreweries and the growth of the craft beer market. Based on current growth rates, by 2030, the number of microbreweries in India is expected to exceed 1,000, marking a threefold increase from 2024. For instance, Bengaluru has over 80 microbreweries, with the vast majority reporting a profit margin exceeding 20%. In addition, international alcohol conglomerates are actively investing in and developing local microbreweries in India.

In Bengaluru, the state government has extended the operational hours for F&B outlets to 1 a.m. and eased licensing requirements. The minimum space requirement for microbreweries has further been reduced from 10,000 sq. ft. to 6,500 sq. ft., encouraging more entrants into the segment.

Speaking about the growing microbrewery sector, Jeff Jose, General Partner, Optimistic Capital, said, “The microbrewery sector in India is witnessing revolutionary growth on the back of rising consumer demand for craft beers and experiential dining. With more tier 1 and tier 2 cities seeing this consumption shift, our fund is well poised to leverage this growth opportunity.”

Karthik Chandrasekaran, General Partner, Optimistic Capital and co-founder of various microbreweries, sheds light on the fund as a sound financial investment instrument, saying, “Microbreweries are unique from restaurants, bars, pubs, and lounges in offering an inclusive environment that appeals to all generations of people, irrespective of their age or socio-economic background. The expansive space requirements for beer production, along with the flexibility to modify cuisine and craft beers periodically to suit guests' changing preferences, ensures the longevity of the microbrewery model versus other traditional F&B formats.”

The fund is backed by four founding partners from the Indian School of Business and INSEAD. Karthik Chandrasekaran is the co-founder of URU Brewpark, GCBC, and Record Room in Bengaluru. He combined his interests in music production, DJ-ing, and home-brewing to successfully set up Bengaluru's first 'Brewery in a Park’. Jeff Jose headed Sales and Marketing for Kellogg Company in Africa. At RBI & 3G Capital, he advised and consulted for CXOs of Burger King and Popeyes QSR brands in APAC. He recently exited profitably from a fintech startup. Varun Krishnan has experience across the Middle East, SE Asia, Europe, and the US in project management and corporate finance at Siemens. He has managed large-format microbreweries with a focus on financial planning and strategy. Edwin Daniel led revenue at Branch International, a profitable $600 million micro-bank. He had one successful exit and one profitable turnaround as part of the leadership teams at Myra (acquired by Medlife) and Branch.