Not a coffee shop, Kozhikode startup brews billion-dollar global creator platform

Kozhikode: At first glance, it sounds like a coffee shop. But Buy Me a Coffee is anything but one. The Kozhikode-born startup, which has built a platform allowing content creators across different countries to turn their followers' goodwill into an income stream, has become a talking point in its home State. Founded by two siblings from the district, the crowdfunding platform has around 30 lakh users and facilitates transactions worth nearly ₹600 crore every year.

The startup was founded by brothers Jijo Sunny and Joseph Sunny of Palakkada House in Puthiyangadi, along with Jijo’s wife, Aleesha John. While pursuing his undergraduate degree in Psychology at Lisa College, Kaithapoyil, in Thamarassery, Jijo decided to drop out and take the plunge into entrepreneurship.

His first attempt to set up an office at KINFRA Park in Kakkanchery met with little encouragement. The fledgling venture, however, found a more welcoming space at Highlight Business Park, where the startup was launched in 2015. Joseph, who had completed his Plus Two at Chinmaya Vidyalaya, soon joined his brother in the venture.

“The idea of making money through YouTube channels and blogs came from Jijo. At that time, most people relied on Google Ads and Taboola for revenue. We wanted to create an alternative,” Joseph said.

Eventually, they came up with the idea of a dedicated page where creators could be directly supported by their followers. The concept carried a distinct Kozhikode flavour too. In this part of Kerala, buying a friend a cup of tea when they meet is almost a social ritual, and Jijo and Joseph simply took that familiar gesture to the digital world.

The first users were people offering online classes in yoga, music, painting and photography. Their followers could now return the favour by buying them a virtual coffee. A coffee costs $5. A fan can buy one, five or even 10 coffees for a creator with a simple click on the button on the creator’s page. By 2017, the platform began gaining traction.

The startup soon caught the attention of big names. Stripe, one of the most widely used payment platforms in the US, came on board as an early investor. Aaron Levie, CEO of Box, also backed the venture. The Kozhikode team subsequently spent three months in Silicon Valley, San Francisco, in 2019.

But the biggest breakthrough came in 2020 with the COVID-19 pandemic. As the world moved indoors, creators who had relied on physical classes and events were suddenly looking for digital lifelines. Buy Me a Coffee found itself at the centre of this shift at exactly the right moment.

“When COVID-19 struck in 2020, most companies went through a crisis. But for us, it was a golden period. People confined to their homes began looking for ways to earn money online. As yoga instructors, teachers and others started offering classes online, the company’s growth increased tenfold,” Joseph explained.

The Kozhikode-born startup has now come full circle, with its new office at Highlight Business Park inaugurated by Chief Minister V D Satheesan the other day. But Satheesan’s remarks were not the first time Buy Me a Coffee had entered the spotlight. Much earlier, the company had found itself at the centre of an unusual international debate.

Two years ago, an ‘X’ post by American activist and Donald Trump supporter Laura Loomer put Buy Me a Coffee in the spotlight. After being barred by payment companies PayPal and Venmo from their platforms, Laura Loomer turned to Buy Me a Coffee and urged her followers to support her through it. The episode triggered discussions over the irony of an outspoken anti-immigration activist turning to a platform founded by Indians to raise money.

Now, even the Chief Minister had to explain the company's name after his recent visit to its new office caused some confusion.“Some media outlets portrayed my visit to inaugurate the Kerala office of Buy Me a Coffee, founded by two Malayali brothers, as though I had gone to inaugurate a coffee shop. The company has offices in 20 countries. The government will extend support to convert such innovative ideas into viable ventures,” he said.