Chai Point Gets $20 Mn Funding In Series C Round Led By Paragon Partners

boxC.in is the company's fresh-milk based dispenser platform with over 2000 such units having been deployed in India.
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In latest funding round led by private equity firm Paragon Partners, organised tea firm Chai Point has raised $20 million. The firms existing investors including Eight Roads (Fidelity’s India PE arm), Saama Capital and DSG Consumer partners also participated in the series C round.

Paragon Partners recently raised $120 mn for its first fund and is led by Siddharth Parekh, son of veteran banker Deepak Parekh. As part of this round, Siddharth Parekh will join Chai Point's board.

DCS Advisory India (earlier Signal Hill Capital) had been the advisor of the company for this fundraise.

A large part of the capital raised will be towards enhancing the brand's multi-market go-to-market and grow significantly from its current sales of 3,00,000 cups per day.

"A substantial portion of our investment proceeds will go towards deepening our sales, marketing, and service operations for our automated hot beverage dispensing business - boxC.in - which is the next growth driver for the business. High-quality tea and coffee is fundamental to our growth and we are going to expand and refine our underlying sourcing program – “Garden to Glass”," said Amuleek Singh Bijral, CEO and Co-founder of Chai Point in a statement.

boxC.in is the company's fresh-milk based dispenser platform with over 2000 such units having been deployed in India.

Further, Chai Point is also set to enhance its food menu and widen its offering as it looks to take on competitors such as Chaayos in the multi-channel tea market that is pegged at over Rs 1.5 lakh crore in India.

"We are bullish on the consumption story in India and are excited to partner with Chai Point. This investment is in line with our overarching investment theme of partnering high-caliber entrepreneurs with compelling business models," said Siddharth Parekh, Co-founder at Paragon Partners.

The 8-year-old company is targeting a 5x growth over the next 3 years as it looks to double down on offline expansion significantly setting sights on its 100th store by May 2018.

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