Kaapi Machines: Using digital tech to deliver a perfect cup of coffee

The firm's IoT-enabled machines are installed in offices and public places, including at Microsoft, Facebook, Rashtrapati Bhawan, and the iconic Deccan Queen train

The rise of coffee culture – to be more precise, cafe culture – in India has been nothing short of remarkable. In the aftermath of the Covid-19 pandemic, the trend of connecting over a cup of coffee has accelerated, fueled by the rise of hybrid work models and a renewed focus on shared experiences. Today, India’s coffee drinking landscape has evolved significantly — from the dominance of a handful of brands like Barista and Café Coffee Day to over 40 specialty coffee roasters offering diverse blends and brewing styles. This has opened up opportunities for companies such Kaapi Machines, which was established in 2007 with the objective of providing top coffee equipment to businesses in the hotel, restaurant, and office segments.

 

Over the years, Kaapi Machines has partnered with leading brands like Blue Tokai, Subko, Araku, Starbucks and McDonald’s, offering coffee equipment, training, and after-sales service.  Other such partners include ITC Hotels as well as its competitor The Taj group of hotels.  

 

With over 250 global brands under their representation, their machines are installed in the offices of global corporates as well as public places, such as Microsoft, Facebook, Rashtrapati Bhawan, and the iconic Deccan Queen train.

 

“During the pandemic, with cafes closed, we shifted our focus to manufacturing through our subsidiary, creating products tailored to Indian preferences and price points,” Abhinav Mathur, chief executive officer of Kaapi Machines, told Business Standard. “At the same time, we launched ‘Something’s Brewing' to cater to home brewers, making premium coffee experiences accessible to everyone.”

 

Today, the company operates across three verticals: manufacturing, B2B (business-to-business) coffee solutions, and B2C (business-to-consumer) offerings for home brewing. Together, Mathur said, these initiatives reflect the firm’s commitment to empower the Indian coffee ecosystem and make great coffee experiences available to all.

 

Leveraging Internet of Things (IoT)  

 

During Covid, the firm initiated a project related to Internet of Things (IoT), a technology which enables devices to communicate with each other intelligently. The aim was to address emerging challenges like contactless interactions. The company integrated IoT into its automatic coffee machines to make the coffee dispensing experience completely touch-free.  

 

“Now, you can simply scan a QR code, access the menu on your phone, choose your beverage, and the machine will dispense it,” says Mathur.

 

For standalone kiosks, the firm also added a payment layer — users can pay digitally before their coffee is served. In the backend, the IoT tech provides real-time data for its partners, like coffee roasters and hospitality spaces. They can monitor coffee consumption, machine performance, and address maintenance needs directly through the cloud.  

 

“Looking ahead, we’re enhancing these features to support home brewers, enabling them to save personalised recipes,” Mathur told Business Standard. The firm is also exploring features that cater to home brewers, allowing them to store personalised recipes on their phones. The machine can then identify the user and dispense coffee tailored to their preferences.  

 

“While our machines are priced approximately 40 per cent lower than comparable European models, our priority is delivering superior beverage quality and advanced features that resonate with both corporates and individual users,” said Mathur.

 

Another innovation is the launch of liquid coffee, set to debut in India next year. This product bridges the gap between instant coffee and high-end brewing equipment, offering freshly brewed coffee in a convenient, ready-to-use format, designed to elevate café operations while reducing setup costs.

 

Expansion on the cards

 

As a B2B entity, the firm maintained a healthy CAGR of 35-40 per cent over the past five years, reflecting the momentum in the coffee industry. Looking ahead, the firm is optimistic about sustained growth for the next 5-7 years, given the evolving café culture in the country.  

 

“We anticipate significant room for expansion — both in terms of the density of cafes and the increasing trend of socialising over a cup of coffee,” said Mathur. “We’re at an exciting juncture where we see immense potential for growth and innovation.”

 

While the company was set up through self-funding, it recognises that external capital can help it scale faster and invest in key areas. The focus is on improving manufacturing processes, advancing technologies, and expanding retail formats.  

 

“Coffee is a deeply experiential product, and by establishing more stores across the country, we aim to make home brewing more accessible and create richer customer experiences,” said Mathur.  

 

Additionally, Kaapi sees significant opportunities in areas like professional barista training, menu planning, and café audits — services that support entrepreneurs in running more efficient and customer-centric operations.  

 

“With growth capital, we’re confident about accelerating these plans and creating meaningful impact in the coffee ecosystem,” said Mathur.  

 

A bumpy road to success  

 

However, it has not been easy for Kaapi Machines. Manufacturing is never straightforward, especially when one is introducing a product that doesn't exist in the market. In Kaapi Machines’ case, there was no supply chain in India, nor any OEM (Original Equipment Manufacturer) companies producing the components it needed. This meant starting from scratch — designing their own brewing system and applying for a patent. The firm also prioritised future proofing the product. This led it to develop a heating system that delivers around 80 per cent power savings.  

 

“These challenges, while tough, became opportunities for innovation, enabling us to create a product that truly addresses customer needs,” said Mathur. “Every hurdle pushed us to think differently, ensuring our product meets customer needs while creating an entirely new category. It’s been tough, but being a category creator and first mover allows us to shape the market.”

 

With no existing market data or benchmarks to rely on, the firm had to educate, interact, and build a home-brewing community from the ground up.

 

About three years ago, Reliance Industries approached the company after noticing a growing interest in home-brewing. They wanted to curate an event that brought together home brewers and showcased a variety of coffee gear and beans. That’s how the Mumbai Coffee Festival was born. The firm recently wrapped up its third edition at Jio World Drive in Mumbai.  

 

“We hosted over 25,000 attendees over three days — it was a celebration of coffee, music, and community. Watching the coffee culture evolve and seeing more people resonate with what we’re building has been incredibly rewarding,” said Mathur.