Chai Kings, the fast growing premium tea retail chain based out of Chennai has raised USD 3 million (~INR 24 crore) in its Series A round, led by AVT. One of the largest packaged tea manufacturers in South India, who own AVT Premium and AVT Gold Cup brands.
Chai Kings – Overview
Founded in 2016 by Jahabar Sadique and Balaji Sadagopan, Chai Kings has 57 outlets in Chennai, Hyderabad and Coimbatore. With the new capital, the brand plans to accelerate the expansion, strengthen the supply chain, offer more products and customer engagement through technology.
Chai Kings has a menu of over 200 products across 8 categories. The menu has masala chai and ginger chai to exotic saffron chai and Kashmiri Kahwa. Black, green and herbal teas, iced teas, bubble teas, milkshakes and hot and cold chocolates.
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Financials
The brand projects INR 48 crore revenue for FY25 with positive EBITDA and plans to double the revenue in next 2 years. Currently, the company generates INR 4 to 4.5 crore monthly revenue with 45% of that coming from food delivery platforms. The brand has also partnered with Swiggy’s 10 minute delivery service Bolt for select menu items.
Roadmap
Chai Kings is planning to open 65 new outlets in Chennai, Bengaluru, Hyderabad and Coimbatore. This expansion is in line with the brand’s vision to become a national player in premium tea retail.
As part of this funding round, The Chennai Angels, who invested in the seed round of USD 1 million (~INR 8.65 crore) in Jan 2020 along with Hyderabad Angels and TiE India Angels are making a partial exit with good returns.
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Leadership Corner
Jahabar Sadique, Co-founder and CEO of Chai Kings said, “We are happy to have A.V. Thomas and Co. as our investor and partner in this journey. Their depth of knowledge in the tea industry is perfect for our vision of serving premium chai at an affordable price across India.”
Balaji Sadagopan, COO of Chai Kings said, “At Chai Kings our mission has always been to bring high quality and affordable chai to every corner of the country. With AVT’s support we can expand even faster while maintaining the quality and service our customers love.”
Investor’s Perspective
Ajit Thomas, Executive Chairman of AVT said, “Chai Kings has built a strong brand and customer base. We see a lot of potential in their growth and are excited to be a part of it.”
With significant funding secured and a clear roadmap laid out, Chai Kings is well-positioned to continue redefining India’s chai culture with a blend of tradition, innovation, and customer delight.