Homegrown D2C coffee brand Sleepy Owl is raising fresh funding of Rs 12 crore from new and existing investors, including Optiscape Network Holdings , Gauri Khan Family Trust , Pramod Bhasin and others.

This funding comes after a 2.5-year gap since the company raised Rs 15 crore in October 2023, led by existing investors Rukam Capital and DSG Consumer Partners. Earlier, it had secured $6.5 million in its Series A round in November 2021.

The board at Sleepy Owl passed a resolution to approve the issuance of 37,944 Series C2 preference shares at an issue price of Rs 3,162.55 per share to raise Rs 12 crore ($1.3 million), according to its regulatory filing reviewed by Entrackr.

Optiscape Network Holdings will lead the tranche with a Rs 5 crore investment, followed by Pramod Bhasin, who will invest Rs 2.5 crore. Existing investor Gauri Khan Family Trust will also contribute Rs 2 crore.

According to Entrackr's analysis, Sleepy Owl's valuation will rise by 28% to Rs 172 crore ($18.5 million) post-money, from Rs 134 crore in its previous round of Rs 15 crore in October 2023.

Founded in 2016 by Ajay Thandi, Arman Sood, and Ashwajeet Singh, Sleepy Owl is an Indian coffee brand offering premium 100% Arabica coffee, with a focus on convenience and high-quality flavor. Its portfolio includes instant coffee, hot and cold brew packs, ready-to-drink cold brews, ground coffee, and brewing kits.

Following the allotment of this tranche, DSG Consumer Partners remained the largest shareholder with a 35.35% stake, followed by Rukam Capital at 13.29%. Among participating investors, Optiscape Holdings will hold 2.91%, while Pramod Bhasin will hold 2.26%. The Gauri Khan Family Trust stakes will also increase to 1.91%. Other participating investors will collectively hold the remaining stake.