The Chennai-headquartered Chai Kings has raised $1 million from The Chennai Angels (TCA) along with Hyderabad Angels and TiE India Angels. The firm intends to utilise the funds raised for its expansion in newer markets which include Coimbatore, Bengaluru and Hyderabad.
“Our target is 100 stores in five years. Apart from expansions, the bulk of this funding will be utilised to strengthen our operations and supply chain management,” Jahabar Sadique, CEO of Chai Kings said.
Currently, Chai Kings sells over 25,000 cups of chai a day, including deliveries and corporate orders. On an average, 7.5 lakh cups of various teas are sold a month through its 40 stores.
“Chennai was always a coffee and a tea market as well. There is so much demand for chai in this market,” Mr. Sadique told The Hindu . “When we started our journey in 2016 the biggest challenge we saw was accessibility, consistency and right price point. We got all the three right and it worked well for us,” he added.
Piyush Bhandari, founder, Intuit Management Consultancy, who lead the investment from The Chennai Angels, said, “We believe the company has a strong leadership team with immense potential to grow and expand across India. The new investment reiterates our commitment towards building a sustainable and scalable Indian Quick Service Restaurant.” For the TCA, this is the first investment for the year 2020. In 2018, the Chai Kings secured ₹2 crore as funding from TCA.
Analysts who track the hot beverages market in Chennai, said that there are over 20,000 tea shops across Chennai. Even the smallest roadside tea shop sells 150-300 cups a day.
