Boba Bhai, a quick-service restaurant (QSR) brand that specializes in bubble tea and other culinary products, said it will utilize the funds to grow to 100 locations within the next 12 months. “Our goal is to expand in tier-1 cities within the next six months and then go to tier-2 and tier-3 cities,” said Dhruv Kohli, the company’s founder.
Boba Bhai, a quick-service restaurant (QSR) brand that specializes in bubble tea and other culinary items, has secured Rs 12.5 crore in seed funding from investors led by the Snapdeal founders’ venture fund, Titan Capital, and Global Growth Capital UK.
ET originally reported on the new funding for Boba Bhai and other food entrepreneurs in March, signaling a growing investor interest in the sector.
The fundraising round was also attended by V3 Ventures cofounder Arjun Vaidya, Razorpay founders’ Marsshot VC, DeVC, Warm Up Ventures, Mamaearth cofounder Varun Alagh, and others.
“We are creating a brand for today’s youngsters. They consume what is popular and want to try new things. “I believe that foreign cuisines, particularly Korean food, will have a large market in India,” Boba Bhai founder Dhruv Kohli told ET.
Boba Bhai operates 25 locations in cities such as Bengaluru, Delhi, Hyderabad, and Chennai. All of the outlets are company-owned.
Kohli stated that the fresh investment will help the company expand to 100 outlets within the next 12 months. “Our goal is to expand in tier-1 cities within the next six months and then go to tier-2 and tier-3 cities.”
The company has an annual revenue run rate (ARR) of Rs 24 crore, which is its predicted annual revenue based on current performance, and an average monthly order volume of 50,000. He stated that the company’s goal for the next year is to achieve an ARR of Rs 100 crore.
Boba Bhai’s website and online platforms such as Zomato, Swiggy, and ONDC account for over 70% of its orders, with the remaining 30% coming via its shops.
According to Kohli, the company plans to use the funding to integrate sophisticated technologies into its offerings and expand its team.
It employs approximately 200 individuals, including kitchen workers.
According to the firm, Boba Bhai controls 90% of the bubble tea market in areas such as Bengaluru.
This funding round is consistent with a larger trend in which many domestic food and beverage firms are gaining investments from early-stage institutional investors and wealthy people.
Boba Bhai has around 18 to 19 bubble tea varieties. It intends to add five to six new tastes and extend its dessert offerings in the following weeks.
“The team’s dedication to customizing a variety of bubble teas to meet the diverse palates and tastes of Indian consumers has helped it develop enormous popularity in a short period of time. We are delighted to collaborate with a brand that aspires to establish a significant food brand in India with strong flavor, demand, and cost-effective distribution,” said Bipan Shah, partner at Titan Capital.
