Target Information

INCAPTO is a Barcelona-based startup focused on sustainable coffee consumption, offering a 'bean-to-cup' approach that eliminates capsule waste. The company collaborates directly with farmers from around the globe to ensure quality in its supply chain. Founded during the pandemic, INCAPTO promotes the use of specialty coffee beans through advanced technology, positioning itself as an eco-friendly alternative in a market notorious for its environmental impact.

With a subscription-based business model, INCAPTO has rapidly gained traction, reaching 20,000 customers and over 2,000 businesses since its inception. The company has reported a turnover exceeding €7 million for 2023, with projections to double this figure in 2024. Their ethical focus aims to uplift the livelihoods of small-scale coffee producers while promoting responsible agricultural practices, especially in a sector where 44% of small producers live in extreme poverty.

Industry Overview

The specialty coffee industry in Italy is robust and integral to the country's cultural identity. As one of the top consumers of coffee globally, Italians average multiple cups per day, making coffee an institutional aspect of their daily life. The Italian market, characterized by its appreciation for quality coffee, provides significant opportunities for innovators like INCAPTO who are committed to sustainability.

Despite a growing demand for coffee, the environmental costs associated with conventional coffee consumption are alarming. Approximately 80% of the 60 billion coffee capsules produced annually worldwide are discarded, emphasizing the urgent need for sustainable solutions. This shift is particularly pertinent in Italy, where coffee is deeply ingrained in society.

Moreover, with global production of coffee anticipated to triple by 2050, there is a pressing responsibility to address sustainability within the industry. This pressure is not just hypothetical; it is a tangible challenge facing the entire coffee supply chain, including growers, consumers, and ecologically concerned entities.

As other sectors increasingly adopt sustainable practices, the Italian coffee industry must evolve similarly to meet consumer expectations and environmental responsibilities. INCAPTO's entrance into this market exemplifies a proactive response to these community and industry-wide challenges, forging a path toward healthier consumption habits.

Rationale Behind the Deal

The €6 million investment round, led by P101 SGR, is pivotal for INCAPTO’s ambitions to expand its presence in the European market, especially in Italy, France, and Portugal. The funding will facilitate the scaling of their operations and bolster their marketing efforts to penetrate these strategically important regions.

This capital injection represents a crucial vote of confidence for INCAPTO, particularly as they enter Italy’s prestigious coffee market. The founders believe that this partnership will not only fuel their growth but also contribute to a system where sustainability becomes commonplace in coffee consumption.

Investor Information

P101 SGR is a prominent player in Italian Venture Capital, noted for its support of companies that integrate technology with sustainability. The firm invested in INCAPTO through its Programma 103 and the Azimut ELTIF Venture Capital P103 funds. Alongside P101, previous investors including JME Ventures, Atresmedia, and Bynd have also participated in this funding round, underscoring confidence in INCAPTO’s business model and future potential.

Stefano Guidotti, Partner at P101, highlighted that INCAPTO aligns seamlessly with P101’s focus on digital innovation and sustainability, marking a significant addition to their investment portfolio. This partnership is expected to enhance P101's influence in the digital innovation landscape of Southern Europe while providing essential resources for INCAPTO's growth.

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Given the increasing global emphasis on sustainability, INCAPTO presents itself as a promising investment opportunity. The company addresses a critical gap in the specialty coffee market by combining ethical supply chain practices with innovative technology, which may lead to substantial returns as consumer preferences shift toward environmentally responsible choices.

The startup's rapid growth trajectory and impressive customer acquisition rate within just three years showcase its market appeal and scalability. Furthermore, the anticipated doubling of its turnover in the coming year signals strong demand and the potential for ongoing success in the Italian and broader European markets.

However, potential investors should remain vigilant regarding competition and the challenges faced within the broader coffee industry, including established players with significant market share. Still, INCAPTO’s unique approach places it in a favorable position to carve out a niche for itself.

Overall, the investment appears to be a strategically sound move by P101 and its partners, aligning with both economic and ethical standards that are increasingly sought after by consumers in today's market.

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