Optimistic Capital, an investment firm established by alumni of the Indian School of Business (ISB), has announced the launch of a Rs 200 crore fund dedicated to the burgeoning microbrewery sector in India. This strategic initiative aims to engage investors in a market projected for significant growth, particularly in major cities such as Bengaluru, Hyderabad, and Pune.
With estimates indicating that India could surpass 1,000 microbreweries by 2030—marking a threefold increase from 2024—Optimistic Capital is poised to capitalize on the profitability of this segment. Currently, Bengaluru boasts over 80 microbreweries, many of which report profit margins exceeding 20%.
“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 I and Tier II cities seeing this consumption shift, our fund is well poised to leverage this growth opportunity,” said Jeff Jose, General Partner at Optimistic Capital.
Recent regulatory changes have also facilitated this growth. The state government has extended operational hours for food and beverage outlets in Bengaluru to 1:00 AM and streamlined licensing regulations. Additionally, the minimum space requirement for microbreweries has been reduced from 10,000 square feet to 6,500 square feet, allowing for easier entry into the market.
Karthik Chandrasekaran, General Partner at Optimistic Capital, emphasized the unique appeal of microbreweries, stating, “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 partners from ISB and INSEAD: Karthik Chandrasekaran, Jeff Jose, Varun Krishnan, and Edwin Daniel. Chandrasekaran is the co-founder of URU Brewpark and Bengaluru’s first ‘Brewery in a Park,’ while Jose previously led Sales and Marketing for Kellogg Company in Africa. Krishnan brings extensive experience in project management and corporate finance from Siemens, focusing on managing large microbreweries with a financial strategy. Lastly, Daniel has a proven track record with successful exits and turnaround experiences, including his role at Myra, acquired by Medlife, and Branch International.