Blue Tokai Targets 800 Cafés by FY30, Eyes Rapid Expansion Amid India's Premium Coffee Boom

Blue Tokai is accelerating its growth strategy with plans to expand its network from around 240 cafés to 800 outlets by FY30, positioning itself to capitalise on India's fast-growing premium coffee market. The specialty coffee chain intends to open nearly 120 new cafés this financial year, expanding across key metros while entering new cities such as Ahmedabad and Lucknow.

The aggressive rollout comes as India's organised café industry continues to gain momentum, driven by rising disposable incomes, premium consumption trends and evolving urban lifestyles. According to IMARC Group, the market is projected to grow from $425 million in 2025 to $1.15 billion by 2034, registering an annual growth rate of 11.14%. Meanwhile, Mordor Intelligence has identified India as the fastest-growing specialty coffee market in the Asia-Pacific region.

Competition is intensifying as leading café brands ramp up expansion. Starbucks, operated in India through its joint venture with Tata Consumer Products, plans to add up to 100 stores annually to its network of more than 500 outlets. Domestic players such as Third Wave Coffee, Cafe Coffee Day and Barista are also strengthening their presence.

Reports indicate that Blue Tokai is in preliminary discussions with private equity investors, including TPG, Temasek and ChrysCapital, to raise at least $100 million through a combination of primary funding and secondary share sales. The company is also evaluating an IPO over the next five to seven years and plans to raise an additional ₹1.5 billion before funding future expansion through internal accruals.

The coffee chain expects revenue to exceed ₹8 billion this financial year, reflecting more than 50% year-on-year growth after expanding nearly seven-fold over the past four years. It is also set to launch its first international outlet in Dubai while working towards profitability by March 2028, despite ongoing challenges from rising coffee prices, supply chain disruptions, and increasing real estate and labour costs.

"India is still fairly under-penetrated in terms of branded cafes," Chitharanjan said. "While it may seem from the outside that there's a lot of competition, there's still tons and tons of white space."

"The advantage of coffee is that it's a very habitual thing," he reportedly said. He added that one of the reasons that people come to the coffee chain is because they like the quality of the core beverage that it has and that's kind of what they stick to.