International Coffee Chain Papparoti Forays In India

European coffee chain, Coffee Island has entered Hyderabad by opening its second outlet in the city.

“From a European favourite to a beloved name across continents, Coffee Island marks another bold milestone,” read a Linkedin Post announcing its entry in Hyderabad.

Coffee Island entered India in partnership with Vita Nova, by opening its first outlet at HQ27 in Gurgaon earlier this January, featuring its proprietary in-house roasting process and a variety of Global Single Estate Beans, Global Blends, and Home Blends.  

“We’re now officially open in Hyderabad - and not just anywhere. Our second cafe in India opens its doors inside a leading technology company,” added the post by mentioning that after a phenomenal debut in Gurugram, the group is thrilled to bring their European coffee culture to South India for the very first time.

The company is targeting at opening 20 outlets by March 2026 and expand to 250 locations by 2029. 

The rollout will begin in Delhi NCR, followed by key cities such as Mumbai, Bangalore, and Hyderabad.

“This expansion is more than just a new store. It’s a testament to the love of our community, the hard work of our teams, and the power of a good cup of coffee to connect people across cultures,” read the post.

Coffee Island, in partnership with Vita Nova, also intends to expand into Bhutan, Nepal, Bangladesh, Sri Lanka, Mauritius, and the Maldives.

Third Wave Coffee, India’s beloved coffee-first QSR brand, is turning up the heat with the launch of its all-new range of pizzas. 

Freshly baked with high-quality ingredients and packed with innovative flavor combinations, the pizza range offers variants as Classic Margherita, Veg Bonanza, Mexican Paneer and Tandoori Chicken. Expanding beyond its signature sandwiches, wraps, bagels, and desserts, this latest addition offers customers a satisfying and delicious meal experience that pairs seamlessly with Third Wave Coffee signature brews. 

Third Wave Coffee’s delectable pizzas are now available across its 140+ cafes in the country, and on delivery as well.

“As India’s café culture continues to evolve, we are complementing this transition by delivering more than just great coffee. With the launch of our new pizza range, we have strategically expanded our core menu to offer a more diverse dining experience, in line with our commitment to innovate per our customers’ changing preferences. This is also another organic progression in our journey to build a holistic, coffee-first QSR brand that stands for quality, creativity, and consistency across every plate and cup,” shared Anirudh Sharma, Co-founder at Third Wave Coffee.

With this launch, Third Wave Coffee further strengthens its position as a go-to destination for both great coffee and wholesome meals. 

For coffee aficionados, First Coffee isn’t just a café - it’s a revolution reshaping how India experiences specialty coffee. 

Now brewing in 10 locations across Delhi NCR and Chandigarh, First Coffee is spreading its love for premium coffee faster than ever. 

From Pacific Mall (Jasola & NSP) to DLF CyberPark, Elante Mall Chandigarh, Vatika Towers, Defence Colony, Hauz Khas, GK-1, DLF Galleria, and City Centre Dwarka, the brand is turning everyday coffee runs into extraordinary rituals. 

The group is also planning to open 15 stores by the end of the quarter, 25 by the next, and an ambitious 100 outlets by FY26.

Every cup is crafted from 100% Arabica beans sourced from the Harley Estate, a micro-lot, single-origin farm committed to sustainability. Using natural lake irrigation, no chemicals, and renewable hydro and solar energy, First Coffee guarantees that your coffee is good for the planet too. 

“At First Coffee, we’re transforming how India embraces specialty coffee. Our vision is to make top-quality, single-origin coffee a simple part of daily life, something you grab without overthinking, without overpaying, and without waiting. Expanding to 10 outlets is just the beginning. We’re here to build a culture around coffee that’s bold, fast, and rooted in today’s vibe,” said Shiv Dhawan, Co-Founder of First Coffee.

“This is just the beginning,” added Sohrab Sitaram, Co-Founder of First Coffee. “With 15 stores projected by the end of this quarter, 25 by the next, and an ambitious 100 outlets by FY26, we are set to redefine the coffee experience across the country.” 

First Coffee is a cultural movement. Its electric blue branding, collectible merch, and buzzing community events make it an icon in its own right. With the tagline, “First Coffee, Then Everything Else,” the brand fuels ambition, creativity, and lifestyle like no other. 

The Coffee Bean & Tea Leaf®, a globally recognized brand loved for its specialty coffee and tea, is excited to expand its presence in India with the launch of its new flagship café located in Janakpuri, the prime of Delhi. 

The Coffee Bean & Tea Leaf®’s partnership with Ekaagra Ostalaritza Pvt. Ltd. is a major strategic step towards expanding their footprint in India, one of the world’s fastest-growing coffee and tea markets. 
 
Reimagining the café culture, The Coffee Bean & Tea Leaf® presents an inviting space designed for everyone, whether you're a coffee connoisseur, working remotely, or simply seeking a cozy spot to unwind. This new café offers more than just exceptional coffee and tea, it promises a complete experience with an atmosphere that blends comfort and style. The modern design, complemented by warm cozy interiors and the therapeutic aroma of freshly brewed coffee, makes it the perfect spot for both your morning ritual and evening hangouts.  
 
The Coffee Bean & Tea Leaf® had been serving up specialty coffee & tea since 1963. Today, the brand continues to uphold its legacy of quality with every cup crafted with utmost care. Right from sourcing premium Arabica beans to small batch roasting and precise brewing techniques, every step ensures a rich flavor that customers can savor with each sip. As the inventor of Ice Blended, the spirit of innovation continues with exclusive offerings featuring a vibrant menu comprising specialty teas, ice blended variations and a wide variety of food options, including gluten-free and vegan choices. Prioritizing customer experience, the café also offers a range of plant-based milk alternatives like almond, oat, and soy milk, catering to all needs.
 
With a goal to open 250 stores nationwide over the next five years, the brand is on track to become India’s ultimate beverage destination. 

Novotel Goa Candolim has opend ‘The Little Place’, a lively new cafe that promises to be a culinary delight for coffee aficionados and food lovers alike. 

This exciting addition to the property offers an exceptional menu featuring a fusion of flavours and an inviting atmosphere perfect for socializing or unwinding.

"Food has the power to bring people together. At The Little Place, we are committed to providing freshly baked goods and breads that are sure to enhance the overall experience, making it a perfect spot for both casual meet-ups and special occasions,” shared Chef Aishwarya Chougale.

The Little Place spans 750 sq ft, designed with a casual theme that encourages guests to relax and enjoy their time. The cafe in a collaboration with The Coffee Co as their coffee partner offers impressive selection of coffee beverages, including classics like Espresso, Cafe Mocha, and South Indian Filter Coffee, as well as creations such as the Ferrero Rocher Iced Latte, Tiramisu Frappe, and many more.

In addition to its standout coffee offerings, The Little Place boasts a delectable range of bakery items such as croissants, cupcakes, and cookies, curated by Chef Aishwarya, the Pastry Bakery In-charge, for those looking to satiate sweet cravings, flavourful choices of gelatos and flavoured paans complement the cafe's beverage selection. Chef Aishwarya is renowned for her excellent creations of high-quality bakery items and her dedication to only using fresh and locally sourced ingredients.

With its vibrant atmosphere and an enticing menu featuring signature drinks and delectable pastries, The Little Place at Novotel Goa Candolim is set to become a must-visit destination for anyone seeking a delightful cafe experience.

Maverick & Farmer, an artisan coffee brand, is setting the standard higher with its third location. Coffee addicts can enjoy their favorite brews at the newest outlet in Bangalore's famous 37 Cunningham Street skyscraper. The third and most recent location of Maverick & Farmer offers customers and coffee enthusiasts a genuinely Maverick experience while continuing to lead the way in experimental beverages.

The 2,000 square foot area, which has both indoor and outdoor seating options, combines comfort and style. It also guarantees a hassle-free visit for every visitor with plenty of parking accessible.

Signature mixes and hand-brewed drinks made using in-house experiments like cold smoking and cherry fermentation are available on the brand's menu. Notable options include the "Spresso Citron," a cool combination of chocolate, zesty orange and frozen espresso; the Parama Cappuccino; Vietnamese Coffee; Coffee Cherry Soda; Cold Smoked Coffee; and the Clarified Cappuccino, which is made with the ideal ratio of milk to espresso and clarified using a food science method. A comprehensive vegan food and drink menu is also available at the cafe.

Stating about their new outlet, Sreeram G. Co-founder of Maverick & Farmer Coffee said, “We are excited to introduce the new space this year! We always aim to create spaces where people can experience artisanal coffee in a way that’s different and exciting. The Cunningham Road location is right in the heart of the city—easy to get to but still tucked away enough to soak in the peace. We’ve also made sure there’s plenty of parking, so guests can visit without any hassle”

abCoffee, a prominent grab-and-go coffee chain in India’s retail market, has launched the country’s first-ever range of 13 coconut-based, non-dairy beverages. This innovation caters to the growing demand for plant-based alternatives, offering both coffee and non-coffee options tailored for modern consumers.

The new range, introduced in three phases, debuted in Mumbai and received significant positive feedback, prompting abCoffee to expand the offerings nationwide. Now available across more than 75 retail outlets in India, the lineup combines coconut milk's creamy texture with abCoffee’s specialty coffee blends, catering to those seeking dairy-free, health-conscious options.  

Narsaya Gajji, Vice President of Operations at abCoffee said, "Our mission at abCoffee has always been to innovate and make specialty coffee accessible, affordable, and inclusive for everyone. The coffee range which got coffee beverages wide appeal across several parts of Asia, resulting into countries like China, Indonesia, Philippines fall in love with coffee is now available in India. I personally love the Iced Thai Latte and Bubble-gum swirl, absolutely amazing."  

The coconut-based range includes unique options such as the Iced Coconut Thai Latte, Bubble Gum Coconut Swirl, and Vanilla Coconut Latte. These beverages are made using specialty coffee beans sourced from India’s plantations, paired with coconut milk to create low-calorie, plant-powered drinks that appeal to coffee enthusiasts and non-coffee drinkers alike.  

This launch aligns with abCoffee’s commitment to bringing accessible and inclusive coffee experiences to the Indian retail sector while contributing to the evolving coffee culture in the country.

Coffee All Day is now open on Brigade Road, Bangalore and they are ready to serve everyone with their bold and unique flavours.

Coffee All Day is a refreshingly straightforward approach on coffee culture that provides premium, ready-to-drink coffee that blends well-known Indian flavors with worldwide standards at affordable pricing.

Coffee All Day offers something for every taste, whether you're in the mood for a traditional espresso, a distinctive Tiramisu Cappuccino, or a cool iced tea. In order to accommodate the hectic lifestyles of urban millennials and Gen Z, the café offers a variety of coffee classics, unique drinks, teas, and easy-to-eat snacks.

The innovative grab-and-go specialty coffee chain in India, powered by technology, abCoffee is thrilled to announce its entry into Hyderabad. abCoffee, which is well-known for its elegant grab-and-go concept and smooth app-driven coffee experience, is prepared to introduce the city's best-grown coffee and beverages at competitive pricing.

Mindspace Hetero, Hyderabad Knowledge City, Mindspace 2A, HiTech City, Malla Reddy University, Mindspace 20, HiTech City, Mindspace 9, HiTech City, and Manikonda (Home Delivery) are the key locations for the brand's seven new decks. In just over two years, abCoffee has expanded to over 70 locations throughout Mumbai, Delhi, Gurugram, Noida, Bengaluru, and now Hyderabad, marking its sixth city of presence.

With the abCoffee app, coffee enthusiasts in Hyderabad can take advantage of unique offers and convenient access to their favorite premium brews at a fraction of the price thanks to India's first coffee subscription model.

“We are super excited to bring the love from rest of India to Hyderabad with the same promise of great quality daily coffee at fraction of a cost with smart App capabilities and pioneering grab and go coffee concept,” commented Abhijeet Anand, Founder and CEO of abCoffee.

Homegrown specialty coffee roaster, Roastery Coffee House, has made history by becoming the first Indian brand to invent and get the Roastery bestseller - Cranberry Coffee trademarked. 

Cranberry Coffee, a unique blend of cranberry juice, sparkling water, and espresso, is the first Indian coffee to secure a trademark, successfully putting India on the global coffee map. This innovative beverage has won hearts across geographies and is the fastest-selling coffee with 1,00,000 cups sold in the last 6 months.

“It is very heartwarming to see how positively everyone has responded to this beverage. The success of Cranberry Coffee is undeniable and almost every order across our chains has Cranberry Coffee. Many coffee brands have drawn inspiration from Roastery's innovative creation and we are very proud that people have liked it so much,” shared Nishant Sinha, Founder of Roastery Coffee House.

A global favorite and staple in cafe menus across India, Cranberry Coffee by Roastery Coffee House is a playful variation of coffee with a dominating flavor of coffee and a tangy hint of cranberry juice. It is the most refreshing drink that can be had at any time of the day. 

Roastery Coffee House, with innovations such as the Cranberry Coffee has been redefining the coffee culture since 2017 and has a strong presence in six cities across India. The brand recently set up its first international flagship store in Helsinki, Finland.

Verlinvest, a global, family-backed evergreen investment firm, has led a significant investment of US$35 million in Blue Tokai, India’s leading specialty coffee and bakery brand. 

This strategic partnership will empower Blue Tokai to deepen its presence in existing metro markets and expand into new Tier I & II cities in India over next three years.  

“With this latest funding, we have the opportunity to bring our passion for coffee to even more people.  We will utilize these funds to accelerate our expansion across all channels – from our own cafes to B2B and B2C platforms,” shared Matt Chitharanjan, Co-founder and CEO, Blue Tokai.

The Series C funding round also saw participation from existing investors Anicut Capital and A91 Partners.

Founded in 2013, Blue Tokai is pioneering India’s specialty coffee movement. Led by co-founders Matt Chitharanjan, Namrata Asthana and Shivam Shahi, Blue Tokai has more than doubled its store count in the last year to 130 outlets currently, delivering a range of specialty coffee products and artisanal bakery goods. 

The newly acquired funds will be used to expand to over 350 locations in the next 30-36 months, drive new product innovation, and expand to new channels.

“We are thrilled to partner with Blue Tokai in their mission to bring specialty coffee to millions across India. Matt, Namrata, and Shivam have brilliantly crafted a cult brand known for its exceptional products and customer experience. Together, we are committed to elevating Blue Tokai to new heights, creating India’s leading coffee chain and delighting consumers with unparalleled quality and service,” pointed Arjun Anand, Managing Director & Head of Asia, Verlinvest.

With this funding, Blue Tokai becomes the the most valued new age Indian coffee company at nearly INR 1500 crore valuation.

“This investment arrives at a strategic time, enabling us to accelerate our expansion and drive profitability while maintaining our commitment to coffee quality. We are experiencing a significant surge in demand for quality coffee and bakery products, and this funding round further validates our hypothesis regarding market growth. We have been steadily adding five cafes each month for over a year, and this capital equips us to meet our three-year target of 350+ cafes in India,” added Shivam Shahi, the Co-founder and COO of Blue Tokai Coffee Roasters.

Verlinvest has a proven track record of successfully scaling consumer brands in India, including Lahori, Epigamia, Heads Up For Tails and Wakefit. The firm’s investment in Blue Tokai demonstrates the ongoing commitment to the Indian market, which presents strong growth opportunities in the consumer ecosystem. This partnership is also further illustrative of Verlinvest’s focus on supporting high-quality F&B brands globally, including notable investments with Insomnia Cookies and Tony’s Chocolonely. 
 

One of India’s fastest-growing coffee chain, Nothing Before Coffee (NBC) has announced the launch of its 64th store in Pune.

NBC currently has 64 outlets throughout India; wherein the company added 17+ new outlets in Q2 offering an exclusive opportunity for people across regions to enjoy high-quality, flavorful brewed coffee & beverages at economical prices.

The Pune store, situated in the upscale Viman Nagar neighborhood, exemplifies Nothing Before Coffee's dedication to quality and community. This sleek and modern outlet offers a diverse menu featuring organic coffee, shakes, mocktails, hot chocolate, shrappe, and a wide range of delectable snacks, sandwiches, noodles, and cookies, carefully crafted to cater to the refined tastes of its discerning customers. 

“As we continue to expand our footprint across Tier 1 and Tier 2 cities in India, our goal remains to make Nothing Before Coffee a household name synonymous with authentic and affordable coffee experiences. Our plan to launch over 30 new stores in the next 3 months. Furthermore, we are determined to achieve a 100 Cr revenue run rate by March 2025,” said Akshay Kedia, Founder & COO, Nothing Before Coffee.

Nothing Before Coffee has expanded its footprint across both Tier-1 and Tier-2 cities in India, currently operating in 26 cities across 13 states and has successfully opened 20+ new outlets in H1 of the year, marking the “highest-ever store addition”. 

Additionally, it has extended its presence to 8 new cities including Delhi-NCR, Uttar Pradesh, Maharashtra, and Karnataka throughout the year.

NBC is rapidly expanding its presence in the coming years with a plan to open 35+ stores in India over the next three months, further expanding its footprint and solidifying its position in the market. 

Known for its innovative beverages and coffee globally, Starbucks is taking beverage innovation to new heights with the launch of 134 new, crafted beverages.

Delivering on the iconic ‘Third Place’ experience, while strengthening commitment to innovation and coffee passion, Starbucks has introduced ‘Starbucks Barista Pride’ where baristas from each Starbucks store will feature a beverage unique to their store, conceptualized and created by themselves.

“Starbucks is committed to delivering an unparalleled, unique experience for every customer. At Starbucks, we believe in celebrating each customer’s individual coffee preference and profile. For us each cup of coffee is unique and especially suited to the coffee palette of our customer. With a deep understanding of coffee, our Starbucks baristas personalize each cup to perfection,” shared Veetika Deoras, Head – Marketing, Category, Digital and Loyalty at Tata Starbucks Pvt. Ltd.

All Starbucks store across India will serve a specially curated beverage, enabling customers to ‘coffee hop’ and try 134 unique beverages till the end of February.

The wide range of unique beverages includes Turkish Espresso Praline, Chai White Chocolate Mocha and Winter Chocolate Cream that are available at the Chapel Road store in Mumbai, Vega Mall store in Bangalore and at the DLF Hub store in Delhi respectively.

Also, the global coffee chain is expected to break even by the end of FY19, after more than six years of opening its first store, here in India.

Coffee exports from India dropped 7.36 per cent on a year-on-year basis to 3.50 lakh tonnes in 2018.

This happened owing to a fall in shipment of robusta and instant coffee varieties, according to Coffee Board.

In terms of value also, coffee exports dropped to Rs 5,770.48 crore in 2018 from Rs 6,091 crore in the previous year.

Italy was the top export market for India in 2018, as 76,437.56 tonnes of coffee was exported to the country followed by Germany (28,582 tonnes) and Russia (21,397 tonnes).

As per the Board's latest data, the country exported 3,50,280 tonnes of coffee in 2018 calendar year, lower than 3,78,119 tonnes in the previous year.

Out of which, export of robusta varieties showed a decline of 17.65 per cent at 1,79,903 tonnes in 2018 as against 2,18,463 tonnes in 2017.

The shipment of instant coffee also showed a decline of 39.87 per cent to 29,157 tonnes in 2018 calendar year as against 48,496 tonnes in the previous year.

However, there was slight increase in the shipment of arabica coffee varieties at 53,302 tonnes in 2018 as against 47,314 tonnes in 2017.

The shipments in terms of value remained lower even as the export realisation was higher at Rs 1,64,738 per tonne in 2018 as against Rs 1,61,086 per tonne in the previous year, the Board data showed.

Coffee production in India, Asia's third-largest producer and exporter of coffee, is estimated to be 3,16,000 tonnes in the marketing year that ended September 2018.

Global coffee giant Starbucks announced Monday it is to eliminate all plastic straws from its 28,000 stores by 2020, becoming the latest corporate giant to take steps to combat pollution from disposable plastic.

After months of tests, many of them carried out in Britain, the firm announced the news on Twitter.

The plastic straws will be replaced by recyclable lids that have a small raised opening allowing consumers to sip their drink, a model that has already been road tested on some of the company's cold beverages in the US and Canada.

Plastic straws have proven difficult to recycle, not because of the material they are made from but because they are too slim for recycling production lines to effectively sort through. The new lids, made of polypropylene, will be big enough for machines to recycle, Starbucks said.

"Starbucks is finally drawing a line in the sand and creating a mold for other large brands to follow," said Chris Milne, director of packaging sourcing. "We are raising the water line for what's acceptable and inspiring our peers to follow suit."

The store will automatically offer cold drinks with the new sipping lid, but for "frappuccinos," a coffee mixed with ice, the store will offer paper straws or ones made of a compostable plastic based on fermented plant starch. Customers who prefer a straw with their drink can ask for one.

By not automatically offering straws with drinks, Starbucks estimates it will save a billion straws a year.

Numerous advocacy groups, including Ocean Conservancy, welcomed the move. Several European countries and cities in the United States are mulling restrictions on the use of plastic straws, although outright bans are still rare. In the US, Seattle -- hometown of Starbucks -- is the only major city to have so far banned the use of plastic straws in its eateries.

Pressure from consumers is driving many companies to tackle waste from packaging. McDonald's is road testing the use of biodegradable straws for its drinks.

The U.S. coffee chain Starbucks Corp is planning to increase its store count in China over with a revenue target set increase thrice in next five years, doubling down on the market as traffic growth comes under pressure in the United States.

Starbucks, which recently raised $7.15 billion in a deal with Nestle SA, aims to have 6,000 stores in the country by the end of 2022, it said in a statement. It has around 3,300 stores in 141 cities in China currently.

Starbucks dominates China's coffee scene, although it is seeing more competition from smaller rivals, similar to how it is coming under pressure from a "third wave" of boutique coffee sellers and cheaper rivals in the United States.

Late last year it launched its first overseas "Reserve Roastery" - an opulent flagship store with gourmet coffees and a bakery - in Shanghai, where executive chairman Howard Schultz told Reuters store numbers in China would hit 10,000 within a decade, overtaking even the U.S. market.

Starbucks also said it expects to more than double its operating income in China over the next 5 years, relative to 2017.

It made $3.24 billion in China/Asia Pacific revenue in the past financial year while operating income was $764.8 million, according to the report calculation. A breakdown for China alone was not immediately available.

This month Starbucks struck a deal with Nestle, the world's largest food and beverage company, to give the Swiss firm exclusive rights to sell Starbucks' packaged coffees and teas around the world.

Starbucks said the alliance with Nestle would help further extend the coffee chain's reach and scale throughout China.

"Starbucks will look to leverage the recently announced global coffee alliance with Nestle to provide even more at-home options to the Chinese consumer in the future," it added.

With its outlets gaining profits in the Indian market, US-based casual dining chain Hard Rock Cafe is planning to expand its presence in the country.

The brand will open one cafe each in Chennai and Chandigarh by the end of this year, said Sanjay Mahtani, co-founder and Executive Director, JSM Corporation, the master franchisee for Hard Rock Cafe in India and Nigeria.

The restaurant chain aims to invest Rs 30-70 crore for the development of these outlets over the next two years.

 “We are keen to expand in India, especially considering the positive response the brand has garnered here,” said Mahtani.

The casual dining chain is looking to explore a variety of models to expand its presence. While JSM Corp will set up some outlets by itself, it will also explore the joint-venture model.

 “Our Kolkata property does quite well in terms of revenue,” Mahtani said.

For expansion, Hard Rock Cafe will now look at cities that fall within the “tourist circuit,” and this could include a place like Goa. “The tourist profile in India is changing, and we will accordingly take a call on the cities where we can have new restaurants.”

One thing will, however, remain constant he said, “There will be only one Hard Rock Cafe in a city. Multiple outlets in a city dilute the brand proposition, Mahtani added. Mumbai, so far, has been the only exception to this rule.”

At present, there are two in Mumbai, and one each in Bengaluru, Delhi, Gurugram, Hyderabad, Pune and Kolkata taking the total count to eight. This apart, JSM runs one cafe at Nigeria.

Known for its buns, Malaysian coffee chain brand Papparoti has planned to open a total of 25 cafes in India within five years as part of its growth strategy. The first outlet was launched at DLF Mall of India on Tuesday.

"As part of our ambitious growth strategy, we are progressively moving forward in the next 5 years with the aim of opening at least 25 Papparoti cafes in India, in order to propel the franchise as one of the largest, most successful and sought-after chains in the region," Rasha Al Danhani, Chairman, Papparoti International General Trading LLC said seeing "great potential" in the Delhi-NCR market.

Originally launched first in Malaysia in 2003, the brand has a presence all over the world, with 407 outlets and kiosks across Malaysia, Dubai, Indonesia, the UK, Australia, China, Vietnam, Abu Dhabi, Kuwait, Saudi Arabia, the UAE, Oman, Bangladesh and now in India.

Vikram Mahajan, Co-founder, Genext V&M International, and Mehul Gupta, Co-founder, Genext V&M International, have brought the concept to India.

Starbucks, the world’s largest coffee retailer, posted its slowest sales growth in India last year, likely indicating that its novelty factor is waning as it focuses on profitability and halts aggressive expansion.

Tata Starbucks, the unit in India formed in partnership with the Tata Group, clocked net sales of Rs 272 crore, a growth of 14 per cent, during the year ended March 2017 and narrowed losses to Rs 32 crore, according to filings with the Registrar of Companies.

A year ago, it had posted sales of Rs 239 crore, a growth of 39 per cent, with a net loss of Rs 41 crore.

With 91 stores until March, a back-of-the-envelope calculation shows that each Starbucks shop sold coffee, snacks and merchandise worth Rs 3 crore.

That’s three times higher than bigger rival Coffee Day Enterprises, which runs the country’s top coffee house chain, Cafe Coffee Day, and had retail revenue of Rs 1,423 crore from 1,682 outlets, or about Rs 84 lakh annual sales per store.

West life Development, the operator of McDonald’s in west and south India, had revenue of Rs 3.6 crore per store on an average. According to experts, Starbucks’ performance in India has stabilised after initial years of high growth.

Ruchi Sally, director at retail consultancy Elargir Solutions said “India is a price-sensitive market, where brands have their own cycle of growth. With new region entry, global brands get high attention, which later stabilises. Starbucks’ premium pricing is also a challenge for opening stores at newer locations”.

Teabox, a premium tea brand which sells online, has picked up around Rs 50 crore in a new round of financing led by Singapore-based RB Investments. The Siliguri-based company has also raised venture debt from DBS Bank as part of the funding. Teabox will expand its back-end infrastructure including cold chain processing centres along with amping up its marketing and distribution with the new funds.

Founder & CEO Kausshal Dugarr said “company will explore an offline strategy for the brand in India by opening concept stores like the one it launched in Bengaluru along with increasing presence in high-end supermarkets such as Foodhall and Godrej’s Nature’s Basket. Dugarr, however, said he does not plan to open up tea parlours on the lines of Chai Point and Chaayos.”

The US, Russia and the UK are Teabox’s top three markets, with India coming in fourth but growing at 300% annually. Founded in 2012, Teabox sources tea leaves from Darjeeling, Assam, Nilgiris, and Nepal.

Harshavardhan Bothra from RB Investments said, “We are excited about backing the challenger in a large category with a demanding customer. We feel that Teabox’s dynamic team and its innovative supply chain will enable to redefine the category. RB Investments specialises in seed and growth-stage rounds and has made India investments in start-ups like Swiggy, FabHotels and Faaso’s, among others”.

The company has in all raised $13 million in capital. Teabox qualifies itself as a vertically integrated premium tea brand. With its sourcing centres located at the tea-growing regions, Teabox procures its teas directly from growers and ships across 112 countries globally.