Chaayos, Indian chai café chain has raised $12M (approx., INR 81 crores) in a Series B round of funding from venture capital firm SAIF Partners, Integrated Capital and Pacatolus. This investment will fuel growth plans of Chaayos as it expands its retail footprint in existing markets of Delhi-NCR, Mumbai and Chandigarh. This infusion of funds will be used to strengthen its foothold in the already existing markets by introducing more cafes.
Previously, Chaayos has raised $7M from Tiger Global. Chaayos is the only non-tech investment of Tiger Global in the world.
Over the last five years, Chaayos has established itself as a fast-casual dining chain, with a steady growth of over 52 cafes across 7 cities. The company also witnessed a healthy contribution from its deliveries (20%) and food business (45%), to the overall company revenues.
Commenting on this development, Nitin Saluja, Founder and CEO Chaayos said, “Chaayos was started with a vision to serve a customised cup of tea to every chai-lover, backed by great food, and delivering a seamless customer experience. We welcome our new investors and are excited to partner with them to further propel the chai café revolution in India. Within a short span of its launch, the brand has grown exponentially with 42% MoM customer repeat business. As we embark on our next phase of growth, we aim to further consolidate our presence in existing markets with new outlets across cities.”
Deepak Gaur, Managing Partner, SAIF Partners said, “We are delighted to be part of Nitin and the team's journey of creating a truly scalable and consistent beverage and food experience platform. Their technology and innovation and customer experience driven approach is distinctive in this fast growth space.”
Speaking about Chaayos and investment Jeff Yam, Principal Investor, Integrated Capital said “Integrated Capital is excited to partner with Chaayos to build a leading Indian consumer brand in one of the most compelling categories in the country. We have been actively tracking the Indian consumer landscape and Chaayos is well aligned with our thesis. We are impressed by the founders' approach to building a business centered around creating exceptional customer experiences, whilst scaling healthily and profitably.”
With continued investments in technology and commitment to deliver the best customer service, Chaayos created its first-of-its-kind IOT enabled chai machine called Chai Monk. The machine brews a perfect customised cup of tea with minimal human intervention using fresh ingredients to provide consistency at all Chaayos outlets.