PC: Indian Retailer
Chennai-based chain retail chain, Chai Kings, manages to raise Rs 24 crore (approximately $3 million) in its Series A funding round. A.V. Thomas and Co. (AVT), which led investment into the brand, was a major turn of events for the brand, which seeks to expand its business and up its game with its product. Even the partial exit made by The Chennai Angels (TCA) in this funding round indicates how much confidence investors have put in Chai Kings’ growth potential.
Chai Kings is a premium chai brand founded in 2016 and predominantly driven by duo, Jahabar Sadique and Balaji Sadagopan who have been in the market selling chai with their brand Vysakh Chai for nearly two decades. The company has in fact been successful in opening 57 outlets in big cities like Chennai, Hyderabad, and Coimbatore.
Utilization of Funds
This funding round’s proceeds will be put to good use to accelerate Chai Kings’ expansion plans. The purpose of the company is to enhance the supply chain, improve customer engagement, and improve operational efficiencies. Chai Kings has a clear focus on growth and revenue is set to double over the next two years and remain profitable. The firm looks forward to closing FY 25 with about Rs 48 crore in revenue, with a positive EBITDA and indicates a commitment towards sustainable growth.
Commitment to Quality and Sustainability
Chai Kings is proud of its offering a premium chai experience and the variety of tea blends on offer. The chai brand strives to maintain the highest standards and delivers each cup and tea box based on the same commitment to quality, sustainability, and taking care of our customers. This has been a popular message with consumers and has aided the brand’s growth and popularity in the highly competitive tea market.
Future Outlook
This bit of funding gives Chai Kings all the wind in the throttle to take advantage of the rising demand for higher quality tea in India. We are going to expand the footprint of the company and open new stores as well as improve existing products. Chai Kings will continue to hush up the country’s old tea culture and add the latest magic in its cup with the aim of being at prime position when the chai culture is undergoing changes.
The conclusion of this series however, is that Chai Kings’ ability to raise a Series A round speaks volumes to its attributes as a strong business model and potential for growth materialization. The brand is primed to flourish prodigious growth in the years to come, designed to offer quality, sustainability, and customer engagement to the public. From Chai Kings, investors and consumers will see interesting developments as the brand redefines the chai experience in India.
