Optimistic Capital, a microbrewery-focused investment firm started by an alumnus of the Indian School of Business (ISB), today announced the launch of India’s first such fund with an initial capital of Rs 200 crore. The fund will seek to tap the growing craft beer market in places like Bengaluru, Hyderabad, and Pune.
India will emerge majorly in the microbrewery sector as the number of microbreweries will exceed 1,000 by 2030, currently from around 300 in 2024. It is Bengaluru, with over 80 microbreweries, several of which post margins of over 20%. International alcohol companies are also keenly interested in investing in and establishing local microbreweries nationwide.
The Karnataka state government took one step in this direction, expanding the hours of operation for food and beverage outlets up to 1 a.m. and simplifying the licensing process. The minimum space required to set up a microbrewery has been decreased from 10,000 square feet to 6,500 square feet.
Jeff Jose, a general partner at Optimistic Capital, said, “The microbrewery space in India is witnessing transformative growth because of mounting consumer demand for craft beers and experiential dining. The more Tier-I and Tier-II cities embrace this transition, the more our fund is ready to capitalize on that emerging opportunity.”
They can create a pleasant ambience that attracts customers of different ages and socio-economic classes. The bigger the fermentation space needed for beers, the more flexible the food and beverage offerings can be according to customer preference, making the microbrewery model more sustainable in the long run than traditional models.
In addition, he is a co-founder of some notable establishments in Bengaluru, including URU Brewpark, GCBC, and Record Room. According to the firm, this new fund will be a big leap forward for the microbrewery landscape in India and will give investors a unique and unparalleled chance to participate in the craft beer movement.
