Bengaluru-based alternative investment firm, Optimistic Capital, has launched a ?200-crore fund (US$24 million) focused on the fast-growing microbrewery sector in India. It will focus on supporting innovative microbreweries, providing them with the capital and expertise to scale and thrive in the craft beer market.
This presents an unparalleled opportunity for investors to tap into this expanding market and capitalise on the profitability of the business, with a particular focus on Bengaluru, Hyderabad and Pune.
Optimistic Capital, which adopts an owner-operator model, actively participates in the management and growth of its portfolio companies, ensuring long-term value creation through sustainable, market-leading brands.
The fund, designed to benefit from the profitability of microbreweries, is backed by partners Jeff Jose, Varun Krishnan, Edwin Daniel and Karthik Chandrasekaran, co-founder of various microbreweries, including Uru Brewpark in Bengaluru.
The ‘beer capital’ already has more than 80 microbreweries, with the vast majority reporting a profit margin exceeding 20%, Optimistic Capital stated in a recent press note. Its projections forecast that by 2030, the number of microbreweries in India could exceed 1,000, a 300% increase from 2024.
The Indian beer market will exhibit a growth rate (CAGR) of 6.72% during 2025-2033, it added.
Unique format
Karthik notes, “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, he adds.
Jeff Jose, General Partner at Optimistic Capital, highlighted the sector’s revolutionary growth. “The microbrewery sector in India is booming due to rising consumer demand for craft beers and experiential dining. With Tier-1 and Tier-2 cities embracing this trend, our fund is strategically positioned to capitalise on this opportunity.”
Varun has managed large-format microbreweries, focusing on financial planning and strategy, drawing from his international experience in project management and corporate finance.
Jeff Jose has extensive experience in sales and marketing with Kellogg Company, Burger King and Popeyes in the Asia-Pacific region. Edwin Daniel led revenue at Branch International, a profitable micro-bank, and has been involved in successful exits and turnarounds in his career. (https://optimistic.capital/).
