Sleepy Owl on Monday said it has raised $6.5 million (about Rs 48.3 crore) in funding, led by existing investor Rukam Capital.

The series A funding raised by the Delhi-based direct to consumer (D2C) company, which operates in the ready-to-drink coffee space, also saw participation by existing investor DSG Consumer Partners and others, a statement said.

Sleepy Owl aims to solidify their core team, build a robust distribution network across India for increased demand of their brews, and firm up its marketing initiatives, it added.

The company has raised $8.5 million in total.

Founded in 2016 by Ajai Thandi, Arman Sood, and Ashwajeet Singh, Sleepy Owl's product portfolio includes cold brew packs, hot brew bags, ready-to-drink cold brew bottles, ground coffee, brew box, and merchandise. The company aims to close with an ARR (annual revenue run rate) of Rs 60 crore by March 2022.

"The pandemic played the role of a catapult for us. It forced us to take a few steps back to aim at the target. We were agile and quick on problem-solving, and were able to get back on track with higher numbers... it (funding) reflects investors' faith in our business model and growth potential in the Indian market,'' Sleepy Owl co-founder Ajai Thandi said.

Thandi added that the company plans to utilize the funds to go deeper into existing retail markets across India.

Sleepy Owl Coffee has a presence in over 1,700 outlets in Delhi NCR, Mumbai, Pune, Indore, Bhopal, Chandigarh, and Jammu amongst other cities, and has catered to more than 60,000 customers. Their products are also available on the company's website, Amazon India and BigBasket.

(With inputs from PTI)