Bengaluru-based investment firm Optimistic Capital, founded by ISB alumni, has launched India’s first fund focused on microbreweries, worth ₹200 crore. This fund aims to take advantage of the growing craft beer industry, particularly in cities like Bengaluru, Hyderabad, and Pune.
The microbrewery sector in India is expected to triple by 2030, with projections of over 1,000 microbreweries compared to around 300 in 2024. Bengaluru alone has more than 80 microbreweries, many of which report profit margins exceeding 20%. Additionally, international alcohol companies are increasingly investing in local microbreweries across India.
In Bengaluru, the state government has extended operating hours for food and beverage outlets until 1 AM and eased licensing regulations. The minimum space requirement for microbreweries has also been reduced from 10,000 square feet to 6,500 square feet.
Jeff Jose, a general partner at Optimistic Capital, stated that the microbrewery sector is experiencing rapid growth due to rising consumer demand for craft beers and unique dining experiences. With more Tier-I and Tier-II cities embracing this trend, the fund is well-positioned to capitalize on these opportunities.
Karthik Chandrasekaran, another general partner at Optimistic Capital, emphasized that microbreweries offer a welcoming atmosphere for people of all ages and backgrounds. They also have the flexibility to adapt their food and beer offerings to meet changing customer preferences, ensuring their sustainability compared to traditional restaurants and bars.
The fund represents a significant step in expanding India’s microbrewery ecosystem and provides investors with a chance to be part of the craft beer movement.
