The tea café chain Chaayos, has raised $21.5 million in a mix of equity and debt funding led by Silicon Valley-based Think Investments. The company had raised $20 million prior to its latest funding round. The other participants in the new financing round also included few existing investors SAIF Partners, Tiger Global and included a $3 million debt investment from Innoven Capital.
On the investment Nitin Saluja, founder of Chaayos said, “We will use the capital to do three things - open new stores, building technology and in hiring. We’ve also picked up some debt, as a business like ours where stores make a profit, servicing debt makes sense.” Chaayos seeks to grow its presence to 300 stores from 80 currently over the next three years. The company said it will have 100 stores by the end of the current fiscal year.
The multicity tea café chain has been able to boost its bottom line by 5% due to use of technology, which has helped reduce wastage, improve stock keeping and improve consistency. It has been serving over 1.7 million customers, with the average repeat rate of ordering tea standing at 3.5 times a month. The New Delhi-based Chaayos is looking forward to go deeper into Delhi-NCR, Mumbai and Bengaluru – where it is present now - rather than spreading itself thin by entering new markets. Currently, the company has 8 stores in Bengaluru, and 72 in Delhi and Mumbai combined.