- September 6, 2018 / 2 min readThe infused capital will be used to further deepen the company’s footprint in the geographies it is currently present.
Marquee venture capital firm SAIF Partners, Hong Kong-based Integrated Capital and Singapore-based growth stage investment firm Pactolus have invested Rs 81 crore in tea cafe chain Chaayos.
Earlier, Chaayos had raised $2 million from existing investor Tiger Global Management. The firm has set up over 52 tea cafes in Delhi-National Capital Region (NCR), Mumbai and Chandigarh. It ended FY18 with revenues of about Rs 52 crore.
The infused capital will be used to further deepen the company’s footprint in the geographies it is currently present.
Nitin Saluja, CEO at Chaayos, said, “Our customer repeat rate across our stores has been 42% month-on-month and the only way to keep that growing is through a cluster approach within the cities we are currently present in. We will look at significantly ramping up our store count over the next year to keep up with our revenue growth, which has been doubling each year for the past five years.”
The tea cafe chain claims that its every store turns profitable within 3-6 months of its launch. The revenue earned from these stores is over 80%.
Chaayos is competing with companies like Saama Capital and DSG Consumer Partners-backed Chai Point and Mumbai-based Tea Trails.
Earlier this year, the cafe chain had roped in former Jubilant Foodworks CEO Ajay Kaul as its Chief Advisor. Chaayos appointed Ajay with the aim to scale up to 300 outlets across the top 8 cities in the country over the next 5 years.
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