Specialty coffee and bakery brand Blue Tokai has raised $35 million (₹293 crore) from Belgian investment firm Verlinvest to expand the brand in tier 1 and tier 2 cities over the next three years.

The Series C funding round also saw participation from existing investors Anicut Capital and A91 Partners.

“The newly acquired funds will be used to expand to over 350 locations in the next 30-36 months, drive new product innovation and expand to new channels,” a statement from Verlinvest said on Saturday.

Founded in 2013, Blue Tokai is led by co-founders Matt Chitharanjan, Namrata Asthana and Shivam Shahi. It has more than doubled its store count in the last year to 130 outlets currently, offering a range of specialty coffee products and artisanal bakery goods.

“We will utilise these funds to accelerate our expansion across all channels — from our own cafes to B2B and B2C platforms. By introducing innovative coffee product offerings through new producers, we will enable ourselves to reach new consumers with varied offerings and continue delivering consistent coffee experiences,” said Matt Chitharanjan, co-founder and CEO, Blue Tokai.

“Matt, Namrata, and Shivam have brilliantly crafted a cult brand known for its exceptional products and customer experience. Together, we are committed to elevating Blue Tokai to new heights, creating India’s leading coffee chain and delighting consumers with unparalleled quality and service,” said Arjun Anand, managing director & head of Asia, Verlinvest.

The investment company’s portfolio includes consumer brands in India such as Lahori, Epigamia, Heads Up For Tails and Wakefit.

The latest round of funding comes months after former-Reckitt Benckiser CEO Rakesh Kapoor’s fund 12 Flags Group picked up a stake in the coffee chain for an undisclosed amount.

The food and beverage sector is seeing a renewed interest from both institutional and angel investors.