The Delhi-based company will use the proceeds from the current round of funding to expand operations, strengthen distribution and launch new products, it said in a statement on Tuesday.
Founded in 2016, Sleepy Owl was co-founded by Ajai Thandi, Arman Sood and Ashwajeet Singh. It sells ready-to-drink cold brew coffees, brew boxes, brew packs and brew bags.
It had raised USD 500,000 (Rs 3.26 crroe) in a seed round led by DSG Consumer Partners in April 2018.
"The coffee lovers' landscape has evolved across the globe and the cold brew coffee concept has gradually seeped into the Indian markets as well. We are elated on receiving the latest round of funding as it reflects investors' faith in our business model and growth potential in the Indian market," Thandi said.
The company plans to utilise the funds to launch new products and go deeper in existing retail markets, Delhi and Mumbai.
Sleepy Owl has a presence in over 1,000 outlets in Delhi and Mumbai and has catered to 60,000 customers. SR BAL