Optimistic Capital launches India's first microbrewery-focused fund

Bengaluru-based investment firm Optimistic Capital, founded by ISB alumni, has launched India’s first microbrewery-focused fund worth Rs 200 crore. The fund aims to capitalise on the booming craft beer industry, targeting markets such as Bengaluru, Hyderabad, and Pune.

India's microbrewery sector is expected to triple by 2030, with over 1,000 microbreweries projected, compared to around 300 in 2024. Bengaluru alone boasts over 80 microbreweries, many of which report profit margins exceeding 20 per cent. In addition, international alcohol conglomerates are actively investing in and developing local microbreweries in India.

Moreover, in Bengaluru, the state government has extended operational hours for F&B outlets until 1 am and simplified licensing regulations. Additionally, the minimum space requirement for microbreweries has been reduced from 10,000 square feet to 6,500 square feet.

Jeff Jose, general partner at Optimistic Capital, said, “The microbrewery sector in India is witnessing revolutionary growth on the back of rising consumer demand for craft beers and experiential dining. With more Tier-I and Tier-II cities seeing this consumption shift, our fund is well poised to leverage this growth opportunity.”

“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,” highlighted Karthik Chandrasekaran, general partner, Optimistic Capital.

Furthermore, Karthik co-founded URU Brewpark, GCBC, and Record Room in Bengaluru. The fund marks a significant step toward expanding India’s microbrewery ecosystem and offers investors an opportunity to participate in the craft beer revolution, the investment firm said.