Chai Kings, a well-known tea retail chain, has secured ₹24 crore ($3 million) in Series A funding from A.V. Thomas and Co. Ltd. (AVT), a leading packaged tea company in India. This funding will help Chai Kings expand its presence, improve its tea offerings, and strengthen its supply chain. The company also plans to invest in technology to enhance customer experience and operations.
Chai Kings aims to close FY25 with ₹48 crore in revenue and a positive EBITDA. With plans to double revenue in two years, the brand remains focused on growth while maintaining profitability and quality.
What is Chai Kings?
Chai Kings is a popular tea retail chain based in Chennai, India. Founded in 2016 by Jahabar Sadique and Balaji Sadagopan, the brand offers high-quality and hygienic chai experiences with a diverse range of tea blends. It focuses on providing premium tea in sustainable packaging while ensuring a customer-centric approach.
Chai Kings operates multiple outlets across Chennai, Hyderabad, and Coimbatore, aiming to make chai accessible and enjoyable in a modern setting. The company recently raised ₹24 crore ($3 million) in Series A funding to expand its operations and enhance its offerings.
Why is This Funding Significant?
This funding will fuel its expansion and strengthen its position in the tea retail market. With ₹24 crore ($3 million) from A.V. Thomas and Co. Ltd. (AVT), the company plans to open more stores beyond its existing locations in Chennai, Hyderabad, and Coimbatore.
The investment will also help Chai Kings enhance its product offerings, ensuring a diverse and high-quality tea experience for customers. Additionally, the funds will be used to improve supply chain efficiency, streamline logistics, and invest in technology-driven customer engagement. This will not only enhance operational efficiency but also create a more seamless experience for customers.
Chai Kings aims to close FY25 with ₹48 crore in revenue and a positive EBITDA, reflecting its strong financial performance. With a clear vision for growth, the company plans to double its revenue in the next two years while maintaining profitability.
This funding marks an important step in Chai Kings’ journey, enabling it to scale operations, reach a larger audience, and continue delivering its signature chai experience across India.
How Will the Funds Be Used?
The funds from Chai Kings’ ₹24 crore ($3 million) Series A funding will be used strategically to drive growth and enhance operations. A significant portion will go towards expanding its store network, allowing the brand to enter new markets beyond Chennai, Hyderabad, and Coimbatore.
Additionally, Chai Kings will enhance its product offerings, introducing new varieties of tea while maintaining its commitment to quality and hygiene. The investment will also strengthen its supply chain and logistics, ensuring smoother operations and consistent product availability. Another key focus area is technology-driven customer engagement, where Chai Kings will leverage digital solutions to improve customer experience and operational efficiency.
Lastly, the company aims to achieve financial growth, targeting a revenue of ₹48 crore in FY25 with a positive EBITDA while working towards doubling its revenue in the next two years.
Founders’ Perspective
The founders of Chai Kings, Jahabar Sadique (Co-founder & CEO) and Balaji Sadagopan (COO), see this funding as a major step toward scaling their business while maintaining quality and customer satisfaction.
Key Takeaways
- Successful Fundraising – Chai Kings raised ₹24 crore ($3 million) in Series A funding from A.V. Thomas and Co. Ltd. (AVT), a leading packaged tea company in India.
- Expansion Plans – The funds will help open new stores beyond Chennai, Hyderabad, and Coimbatore, expanding the brand’s presence across India.
- Product Innovation – Chai Kings aims to enhance its tea offerings, ensuring high-quality and diverse flavors to attract more customers.
- Supply Chain Strengthening – Investment will be used to streamline logistics and improve operational efficiency, ensuring consistent product availability.
- Technology-Driven Growth – The brand will focus on customer engagement through technology, improving digital interactions and service efficiency.
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Conclusion
Chai Kings’ latest funding marks a significant step in its journey toward becoming a leading tea retail brand in India. With ₹24 crore ($3 million) from AVT, the company is set to expand its footprint, enhance product offerings, and strengthen its supply chain. By leveraging technology-driven customer engagement and operational efficiencies, Chai Kings aims to close FY25 with ₹48 crore in revenue and a positive EBITDA.
Looking ahead, the company plans to double its revenue over the next two years while maintaining profitability. With a strong growth strategy and commitment to quality, Chai Kings is poised for long-term success.
Chai That’s Worth Every Sip! Discover the diverse range of premium teas at Chai Kings.
