Chaayos is a vibrant and creative brand of Indian tea cafes that aims to give the traditional tea-drinking culture a contemporary spin. Chaayos has quickly expanded to become a well-known brand in the Indian cafe business by placing a strong focus on quality, customer experience, and innovation. The company ensures the authenticity and depth of flavors by using premium tea leaves sourced from all around India. Every location also prioritizes creating a welcoming atmosphere that serves as the ideal escape from the bustle of the city.
About Chaayos
Chaayos was established in 2012 by Nitin Saluja and Raghav Verma to provide tea lovers with a distinctive and enjoyable chai experience by providing them with freshly brewed, customized drinks. By providing a range of carefully and precisely created tea blends, the brand expresses the rich and varied flavors of India. Customers may rest, unwind, and enjoy their favorite tea along with delicious snacks and small meals at Chaayos locations because of their warm and inviting atmosphere.
Chaayos’s business strategy revolves around giving its clients a remarkable, personalized chai experience. Chaayos guarantees the authenticity and depth of its products by utilizing a strong supply chain that procures premium tea leaves and components from various regions of India. To accommodate a wide range of tastes and preferences, the brand combines traditional and modern components, enabling customers to customize their chai in over 80,000 unique ways. With a significant presence in high-traffic places including malls, business parks, and airports, Chaayos operates through a network of carefully placed locations in tier-1 towns and metropolitan cities. To meet the diverse needs of contemporary customers, the company employs an omnichannel strategy that provides delivery, takeaway, and dine-in options.
Chaayos’s revenue model is based on several sources that guarantee consistent and long-term growth.
Generating Revenue Through Various Outlets: The main source of income for its stores is the sale of tea and related foods. Through a well-planned menu that offers small meals, snacks, and desserts to go with the tea, the business places a major emphasis on upselling.
Generating Revenue by Forming Partnerships with Food Delivery Platforms: Furthermore, Chaayos has embraced the digital era by collaborating with well-known food delivery services, which has greatly increased their sales outside of their physical locations.
Generating Revenue Through Packaged Tea and Other Accessories: In order to enable clients to replicate the Chaayos experience at home, Chaayos now sells packaged tea mixes and accessories.
Generating Revenue Through Various Programmes and Collaborations: Additional revenue streams include special promotions, loyalty plans, and partnerships with corporate clients for catering and bulk orders, which establish Chaayos as more than just a café but a full-fledged tea brand.
Chaayos Financials
Chaayos Revenue
Chaayos made most of its money (95.32%) from selling its own products like tea, earning INR 236.87 crore in FY24, a 3.1% increase from last year. It also earned INR 10.74 crore from selling other items like snacks and tea leaves, which nearly doubled. Service income dropped to INR 0.89 crore.
In total, including INR 22.7 crore from non-operating sources, Chaayos earned INR 271.2 crore in FY24.
On the cost side, employee salaries rose to INR 81.15 crore, while raw material costs fell to INR 76.54 crore. Depreciation stayed around INR 51.83 crore, commissions fell to INR 26 crore, and other expenses were INR 89.69 crore.
Overall, Chaayos managed to cut its total expenses by 11% to INR 325.21 crore in FY24, compared to INR 365.68 crore in FY23.
Offering customized tea experiences is one of Chaayos’ most distinctive features. Chaayos gives something as basic as chai a personalized touch by giving clients the option to select from more than 80,000 different tea blends.
SWOT Analysis of Chaayos
Chaayos SWOT Analysis
Chaayos Strengths
In the chai business, Chaayos has developed a strong brand identity that appeals to both conventional and contemporary customers.
The business uses technology to improve client involvement by providing customized chai-making alternatives.
With a large selection of chai goods, including snacks and instant teas, Chaayos Bazaar can satisfy a variety of customer tastes.
Chaayos Weaknesses
The stated 34% increase in losses despite revenue growth suggests possible operational inefficiencies or excessive administrative expenses.
Particularly as the business launches a new coffee menu, the emphasis on chai may reduce market attractiveness and weaken brand identity.
Expansion efforts into smaller markets may be hampered by a lack of brand recognition outside of major cities.
Chaayos Opportunities
There is a chance to increase the range of herbal tea products due to the growing trend of health-conscious consumers.
By launching additional instant tea flavors, Chaayos can take advantage of the growing demand for quick, ready-to-drink tea options.
Partnerships with nearby eateries or cafes could increase brand awareness and expand the audience.
Chaayos Threats
Market share may be eroded by fierce rivalry from well-known companies like Tata Tea as well as fresh competitors in the chai and herbal tea industries.
Disruptions to the supply chain may have an impact on the availability and cost of products, especially when it comes to obtaining high-quality tea leaves and components.
Chaayos may be under pressure to implement more environmentally friendly practices due to the growing sustainability movement, which could necessitate a significant financial outlay.
Conclusion
Every journey has its share of difficulties, and for Chaayos, scaling quickly without sacrificing consistency and quality is a major obstacle. As a result, being quick on one’s feet and creative is essential for success in India’s rapidly developing cafe scene. But Chaayos’ future is bright. With aspirations to enter new markets and expand geographically, Chaayos is well-positioned to solidify its position. It will be essential to prioritize digital growth, particularly in improving their web presence and mobile app. Chaayos continues to brew its way to success by utilizing a thorough blend of creative marketing, operational efficiency, and customer-centric initiatives. As it stands, Chaayos is a prime example of how a conventional idea may be updated to provide a distinctive and long-lasting company plan.
FAQs
What is Chaayos?
Chaayos is an Indian café chain known for customizable chai, snacks, and a tech-enabled tea experience, blending tradition with modern flavors.
What is Chaayos business model?
Chaayos follows a café-retail model, earning mainly from dine-in, takeaway, and online tea/snack sales, along with ready-to-drink and instant tea products.
How does Chaayos make money?
Chaayos makes money by selling chai, snacks, and instant tea products through its cafés, website, and delivery platforms.
The idea of a franchise business is becoming more and more famous in numerous industries. The main reason this idea is so popular is that it not only helps brands make more money, but it also helps them connect with more people around the world.
After making waves in other industries, the franchising concept is also shaking up the tea cafe industry in India. A lot of brands, like Chaayos, Chai Sutta Bar, Tea Villa Café, and more, have already grown their businesses by using the franchise business model. Starting a tea stall franchise is a great, low-cost business idea for anyone passionate about serving fresh and flavorful tea.
This trend will continue to grow over the next few years. The café culture in India has grown a lot over the years and is now found in more places than just the big towns and metropolitan areas. Tea café franchisors are actively looking to explore the unexplored regions of India in order to turn this trend into a business opportunity.
Guide to Starting a Tea Franchise in India
In this tea franchise list, we will learn about some of the best tea franchises available in India, along with the required investments and potential profit margins. There are many popular chai franchise names in India offering low-investment options for aspiring entrepreneurs.
Best Tea Franchise in India
Tea is a big part of Indian culture, and there are many famous tea franchises to choose from. Here are some of the top tea franchises in India known for their quality and popularity:
In 2016, Anubhav Dubey and Anand Nayak established The Chai Sutta Bar in Indore, which quickly became one of the most famous tea franchise in India. Customers can have kulhad chai, coffee, quick meals, burgers, and more from this Indian tea franchise.
With over 550 locations in 300+ cities, Chai Sutta Bar is the top quick-service restaurant brand in India. It is the world’s largest chai chain, with more than 10,000 employees working in franchisee-owned stores run by independent business owners.
Chai Sutta Bar, one of the top 10 tea franchise in India (CSB) see tremendous profit margins and consistent, outstanding growth year after year. Beginning a journey with a proven, tested, and ROI-driven company model is a cakewalk.
There are two franchise concepts in Chai Sutta Bar:
Under the FOFO (Franchise Owned Franchise Operated) model, the Company grants the franchise operator a licence to use the Brand Name in exchange for a fixed, non-refundable fee, or “Franchise Fee,” for a set amount of time.
The Company-Owned Company Operated (COCO) business model, which is owned and run by the company itself, could be simply seen as another outlet of the company. From the moment the business opens until it closes, the company takes care of everything. A franchise location is completely unrelated to it. Chai Sutta Bar, being a go-to place for chai lovers, is one of the best and most profitable tea franchise in India.
Chai Garam was founded in 2008 by Bhrigu Dutt in New Delhi. After being in this business for more than a decade, Chai Gram has already opened around 300 outlets (till May 2024) both in India and abroad. Despite being modular and standardised, the theme and design aspects of the Chai Garam outlet were meticulously designed to enable customisation while maintaining quality, value, and cost.
Malls, high-street markets, food courts, airports, metro stations, hospitals, universities, offices, and petrol pumps are just a few of the many places one may find Chai Garam Cafe in its many modular forms. Its popularity among customers makes Chai Garam one of the top tea shop franchise in India.
Chaayos
Tea Franchise in India
Chaayos
Infrastructure Investment
INR 5-10 Lakh
Area Required
200-400 sq. ft.
Total Franchise Units
Around 200
Franchise Fee
Included in Infrastructure Investment
Royalty Fee
INR 1 Lakh
Profit Margin
95%
Chaayos – Top 10 Chai Franchise in India
Chaayos, one of the top 10 tea franchise in India was founded by Nitin Saluja and Raghav Verma in 2012 in Gurugram. Chaayos offers a wide selection of tea blends, as well as optional additions like ginger, tulsi, and lemongrass, and customers can even customise their tea by choosing the sweetness level. This concept of personalisation is reflected in Chaayos’ slogan, “Experiments with Chai,” and this connects perfectly with chai enthusiasts all throughout India. Chaayos has about 25 different flavoured teas that can be altered in 12,000 different ways.
A Chaayos franchise requires an initial investment of 5–10 lakh rupees. This includes the price of setting up a store or unit between 200 and 400 square feet in size, as well as other essential charges for getting the franchise outlet up and operating. One of Chaayo’s unique selling points is that it pairs each franchisee with a personal relationship manager who is there to help them out whenever they need it and handle any issues that arise while they’re running the business.
Chai Point, another prominent name in the tea franchise list, was founded by Amuleek Singh Bijral in 2010 in Bengaluru. Since its inception, the Chai Point has expanded its presence strongly in the country and it has become one the best tea franchise of India. The Chai Point’s mission is to serve customers the finest chai possible by using only the freshest, all-natural ingredients, such as ginger, elaichi, and hand-blended spices.
Chai Point Franchise sources their ingredients from the finest estates in Assam, where they undergo rigorous testing by their experienced tea tasters. The chai they serve is without sugar and wholesome, reflecting their commitment to providing customers with both flavour and health.
In order to add more professionalism to their franchises, Mountains Trail Academy (MTA) has partnered with the Chai Point Franchise to teach their staff on how to make great tea for customers. The retail shops bring in about 60% of Chai Point’s income, while the corporate service business brings in 30% and the delivery business brings in 10%.
Chai Calling
Tea Franchise in India
Chai Calling
Infrastructure Investment
INR 4-5 Lakh
Area Required
100-200 sq. ft.
Total Franchise Units
110+
Franchise Fee
INR 1.5 Lakh
Royalty Fee
NA
Profit Margin
70%
Chai Calling – Top Chai Franchise in India
Chai Calling, another famous tea franchise was started in 2015 by Pramit Sharma and Abhinav Tandon in Noida. In chai calling, the brand uses traditional and environmentally sustainable clay mugs that give customers a real desi chai experience. The company is stepping up its expansion efforts by targeting high-traffic places, such as residential neighbourhoods, colleges, malls, and institutions.
One of the most successful low-cost tea franchise in India, Chai Calling has quickly expanded to 110+ locations across the country and beyond. Opening a tea cafe franchise is a piece of cake with the help of Chai Calling’s comprehensive ecosystem, which includes kitchen planning, sales, technology, logistics, vendors, and staff training.
MBA CHAI WALA
Tea Franchise in India
MBA CHAI WALA
Infrastructure Investment
INR 2-5 Lakh
Area Required
100-150 sq. ft.
Total Franchise Units
Around 100
Franchise Fee
INR 1-2 Lakh
Royalty Fee
4%
Profit Margin
40-50% sales
MBA CHAI WALA – Top Chai Franchise in India
In 2017, Prafull Billore invested just INR 8,000 to launch MBA CHAI WALA in Ahmedabad. Tulsi, Masala, Adarak, Chocolate, and Elaichi chais are just a few of the varieties of tea offered by this Indian chai franchise.
The MBA CHAI WALA franchise has two franchise business models for investors: the Highway Model and the Lounge Model. While a highway model would necessitate a massive area of 5,000 to 8,000 square feet, a lounge model might be achieved in as little as 1,500 square feet. The brand also has a kiosk model that can be put up in 100–150 square feet. At present, MBA CHAI WALA has over 150 brand partners and over 100 outlets and is one of the low-cost tea franchises in India.
Chaai Seth
Tea Franchise in India
Chaai Seth
Infrastructure Investment
INR 4-6 Lakh
Area Required
100-350 sq. ft.
Total Franchise Units
Around 50
Franchise Fee
Around INR 2 Lakh
Royalty Fee
5%
Profit Margin
95%
Chaai Seth – Top Chai Franchise in India
Chaai Seth, another leader in the tea franchise list started its business operations in 2015 in Shillong. Founded by Arpit Raj, the brand Chaai Seth has risen in popularity owing to providing high-quality food and beverage experiences to its customers through its own and franchise outlets. Innovative tea blends, uniquely designed products, and a strong sales process are the key elements of Chaai Seth ‘s franchise business.
Franchisees get assistance from Chaai Seth when evaluating possible brand sites. They also get formal business training in areas like accounting, marketing, and sales both on and off-site, which helps them run the store smoothly. During the first week of business, Chaai Seth also sends support workers to help out until the outlet owners feel confident running the show. Chaai Seth is one of the best low-cost franchises in India, making it a lucrative opportunity for new business owners to start without spending too much money.
Chai Thela began its business operations in 2015 in Noida. Founded by Pankaj Judge, the brand has become one of the emerging brands in the Indian tea franchise world. Customers can choose from a wide array of teas at Chai Thela.
Chai Thela has around 40 outlets across 10 states in India as of May 2024 and intends to open more in the future. The primary target audience for Chai Thela’s kiosk-based business strategy is educational institutions and technology centres.
Tea Trails
Tea Franchise in India
Tea Trails
Infrastructure Investment
INR 35-40 Lakh
Area Required
500-800 sq. ft.
Total Franchise Units
40+
Franchise Fee
INR 5-7 Lakh
Royalty Fee
5%
Profit Margin
70% of sales
Tea Trails – Best Chai Franchise in India
The Mumbai-based Tea Trails was established in 2012 by Sanjeev Potti and is one of the top 10 chai franchise in India. Through its tea franchise concept, the company is letting its customers purchase and order hot beverages and snacks from the company’s tea shops that focus on offering a variety of flavoured teas, freshly brewed coffees, and breakfast menus.
A lot of perks are in store for the individual as a franchise partner. The company claims that those who have invested in Tea Trails as franchisees have witnessed the benefits of the tea cafe franchise model and the simplicity of the setup process. It also guarantees a healthy profit margin and return on investment.
Chai Nagri
Tea Franchise in India
Chai Nagri
Infrastructure Investment
INR 10-15 Lakh
Area Required
200-300 sq. ft.
Total Franchise Units
Around 20
Franchise Fee
INR 3 Lakh
Royalty Fee
2%
Profit Margin
40%
Chai Nagri – Top Chai Franchise in India
In 2018, Divam Wadhwa and Simran Singh established The Chai Nagri in Himachal Pradesh. Just like any other chai franchise in India, Chai Nagri serves up a variety of delicious, freshly brewed varieties of traditional Indian Chai, along with a wide selection of dishes.
Chai Nagri is the go-to brand in the areas where it operates because it offers comprehensive support, unlike other franchise models that just concentrate on opening new franchise outlets without proper surveys and services. This includes finding the perfect location, hiring the right staff, marketing on social media, sales analysis, and product presentation, among other unique services.
Tea Villa Café
Tea Franchise in India
Tea Villa Cafe
Infrastructure Investment
INR 15-18 Lakh
Area Required
200 sq. ft.
Total Franchise Units
NA
Franchise Fee
INR 5 Lakh plus GST
Royalty Fee
INR 20,000/month
Profit Margin
Around INR 1 lakh/month
Tea Villa Cafe – Top Chai Franchise in India
In 2014, Tea Villa Café was established in Mumbai by Micky Panjwani and Roopanshi Bhatt. Through its franchisees, the company operates its business. Its main concentration is the sale of various types of tea, including black, green, herbal, white, and so on. Waffles, soups, salads, sandwiches, burgers, coffee, juices, and more are also available for breakfast and snacks at Tea Villa Café.
Tea Villa Café has two franchise concepts– The first is the café model and another is the Xpress outlet. For the café model, a hefty investment is required of about 30-50 lakh whereas, the Xpress outlet requires a smaller investment of 15-18 lakh and can be operated from just 200 sq/ft. area. With this dual model, Tea Villa Café is giving a new tweak to the tea franchise business in India and also an opportunity for young investors who have limited amount of funds.
The Tea Planet was established in 2010 in New York, USA, by Srinivas Ganadinni as Hiranne Inc. He and his wife, Madhuri Ganadinni, then established Ganadinni Fine Foods Impex Pvt Ltd. in 2011 in Hyderabad to expand their tea business in India. The headquarters of The Tea Planet is now located in Hyderabad. This famous tea franchise provides its franchisees with a wide variety of hand-blended, flavour-tested teas, bubble tea drink mixes, and syrups. A variety of bubble tea beverage mixes inspired by Taiwanese culture and tailored to Indian taste buds are available at The Tea Planet.
For the benefit of a global customer base, The Tea Planet has standardised serving sizes, prices, and product varieties. University campuses, medical facilities, shopping centres, airports, and any other commercial or residential area can host this tea franchise as a standalone café or kiosk. It is considered one of the best and low-cost tea franchises in India.
Pappu Chaiwalla
Tea Franchise in India
Pappu Chaiwalla
Infrastructure Investment
INR 15-20 Lakh
Area Required
600-700 sq. ft.
Total Franchise Units
9
Franchise Fee
INR 5 Lakh
Royalty Fee
6%
Profit Margin
NA
Pappu Chaiwalla – Top Chai Franchise in India
Pappu Chaiwalla works under the umbrella of the hospitality consultant, Chefs@Work, which was founded by Chef Rajneesh Gandhi. Pappu Chaiwalla started its franchise business in 2018, and as of May 2024, it has 9 outlets in 4 states.
The Pappu Chaiwalla, one of the best tea shop franchise presents an innovative business model that relies on semi-skilled workers to run well, which helps its investors keep things running smoothly. On occasion, the company will update its menu with new and improved food and snack options, including innovative blends. From the very beginning, until it reaches a point of profitability, Pappu Chaiwalla provides assistance and support to its new business locations.
Chahapani Amruttulya
Tea Franchise in India
Chahapani Amruttulya
Infrastructure Investment
INR 5-10 Lakh
Area Required
150 – 300 sq. ft.
Total Franchise Units
100-200
Franchise Fee
INR 3 lakh
Royalty Fee
–
Profit Margin
–
Chahapani Chaiwalla – Top Chai Franchise in India
Chahapani Amruttulya, the best best chai franchise in India, is a fast-growing tea franchise in India known for its unique blend of traditional taste and modern business approach. Started in 2019, it has expanded to over 200 outlets across states like Maharashtra and Gujarat. With a low investment and support in training, marketing, and operations, it offers a strong return potential. It’s a great opportunity for aspiring entrepreneurs in the food and beverage sector.
End Note
The concept of tea shop franchises is rapidly gaining traction in India. Market players like Chaayos, Chai Garam, Chai Sutta Bar, Tea Trails, and more have expanded their businesses in a short period of time. However, it is crucial to closely monitor the growth strategies of these brands as they venture into tier 2 and 3 cities. For top tea franchise in India, gaining a foothold in these cities is essential if they want to break into tier 4 and 5 cities. Overall, the future of the tea franchise business industry in India seems promising.
Some of the best tea franchise in India include Chai Sutta Bar, Chaayos, Tea Villa Café, MBA CHAI WALA, The Tea Planet, Chai Nagri, Chai Point, Chai Garam, Chai Tapri, Pappu Chaiwala, Chai Calling, and more.
What are some of the best low-cost tea franchises in India?
Some of the best low-cost tea franchises in India under a 10 lakh investment include MBA CHAI WALA, The Tea Planet, and Chai Calling.
Are tea franchises profitable?
Tea franchise in India, led by brands like Chaayos, Chai Sutta Bar, and Tea Villa Café, are growing profitably through the franchise model. This trend will continue as café culture expands, with franchisors exploring into new regions.
Which is the tea franchise under 1 lakh in India?
Tea franchises under INR 1 lakh in India are rare, but some local or emerging brands may offer low-cost kiosk or cart-based models. Options may include small regional brands or mobile tea stalls with low setup fees. Always verify terms directly with the franchisor.
Which is the tea franchise under 2 lakh?
Tea franchises under INR 2 lakh in India are ideal for small investors looking to start a business with low risk. Options like kiosk models from brands such as MBA Chai Wala (Express) or Chai Garam offer low cost tea franchise. These franchises typically include essential equipment, training, and initial stock. Some regional or local tea brands also provide budget-friendly franchise opportunities.
Chai is much more than a cuppa tea in India. It’s something that folks sip to begin their mornings; it is a required beverage to wake you up every morning and a nourishment drink with midday treats. Our generations have dabbled with Tea and its flavours; there’s a distinct meaning of a fine balance for every ‘chai lover.’ Folks sip chai across every home in this nation, regardless of social status, or, to put it differently, a type of brew that is required to keep them going.
Although chai is such a vital and well-known beverage, we have never noticed a well-known label or chain outlet devoted solely to chai. There are around 35,711 Starbucks stores across the globe, as per news reported by Statista in 2022, and you couldn’t get a lovely and clean cuppa in a café with a pleasant atmosphere. Folks had to rely on their homes or any curbside shop to get their favourite cuppa. This is the underlying spark that supports Chaayos.
“This was the key aspect behind Chaayos—to have a spot where you can go get a vibrant clean cuppa made according to your preference with a nice, cozy setting,” says Nitin Saluja.
In this article, let’s explore the world of Chaayos—its founders, business and revenue model, funding, and more.
Chaayos is a contemporary Indian brand that embodies the bold spirit of its creator, Nitin Saluja. Visitors adore visiting its well-furnished cafés to sip chai and sample various kinds. With true and delicious ingredients, Chaayos now makes it simple for anyone to enjoy their favorite adrak-elaichi chai at home. Chaayos may conduct enjoyable events, update the cafés with unique touches that pay homage to Nitin’s design, and spread the word about the simplicity and genuineness of their homemade chai alternatives to improve things even more. For those who enjoy chai, Chaayos turns into the ideal setting for both at home and in cafés.
Chaayos – Industry
Indian food and beverage businesses have raised over $600 million in funding in a fast-paced expansion from 2014 to H1 2022. Future prospects appear promising; by 2025, it is predicted that India’s e-commerce sector will grow to be worth $400 billion.
According to the findings from Inc42’s “The State of Indian Startup Ecosystem Report, 2022,” the food and beverage industry is leading the way and is expected to develop at a remarkable rate of 29% CAGR over the next three years. This highlights the dynamic and promising startup scene in India, especially in the food and beverage industry.
Chaayos – Founders
Nitin Saluja and Raghav Verma Co-Founders of Chaayos (Left to Right)
Chaayo’s co-founders are Nitin Saluja and Raghav Verma.
Nitin Saluja
Nitin Saluja, co-founder of Chaayos, graduated from IIT Mumbai. Additionally, he is one of ThinkLabs’ co-founders. He was employed at Opera Solutions prior to cofounding Chaayos.
Raghav Verma
Raghav Verma is a graduate from IIT Delhi. Having co-founded PrepSquare and having experience in Opera Solutions, his unique combination of technological know-how and business acumen has played a pivotal role in establishing Chaayos success.
Chaayos – How was Chaayos Started?
Chaayos is the brainchild of two engineers, Nitin Saluja and Raghav Verma. They worked for the US consultancy firm Opera Solutions. Nitin was a tea connoisseur.
During this time, they both met via a common friend who was also employed by Opera Solutions in the United States. They both discussed the concept and were compelled to put the weirdest idea on the startup’s floor. They both resigned and poured their hearts and souls into their startup.
Nitin is in charge of product design and distribution networks, while Raghav is in charge of business growth and advertising. They called their company “Chaayos,” and the first store was established in Gurgaon in November 2012.
It is very easy to think of Chai as an item. Consumers at Chaayos, on the other hand, can choose from 25 flavoured teas that can be customized in 12,000 diverse ways! The catchphrase is “Experiments with Tea.” Their company believes in the customization of chai with a broad array of flavours. They have introduced a very special chai menu, or you could say they were willing to try something new.
The overall vibe of the stores is another significant aspect they have introduced to their biz. The café exemplifies the “Chai lifestyle.” The interiors pertain to the very fundamental idea of chai; lamps created by cutting Chai cups, teapots, and Chai samples in a palette that demonstrate the firm’s exploratory nature.
Chaayos Interior
The top-selling Chaayos store generated a yearly income of Rs 1 crore. This was the most significant achievement in its business journey as per the news report of July, 2023.
Chaayos – Logo
Chaayos Logo
Chaayos – Business Model
Chaayos’ business model is reflected in its unique product, ‘Meri wali Chai’ which is a combination of quality, flavours, wholesomeness, and variety. It provides various types of tea flavours, including 25 tea types, and 12,000 ways to customize them.
Clients can also choose from a variety of add-on flavours. As a result, it offers personalized tea solutions based on the customer’s preferences. It sells bundled snacks and chai mixes in addition to tea.
Its main audience includes both Gen-Z and Gen-Y clients, as tea is popular among both generations. The clientele comes from upper middle class and upper class backgrounds.
Chaayos – Unique Selling Proposition(USP)
Its USP is a very new and unique flavoured hygienic, customized tea. In addition, the label has other facets of USP, such as:
A Deluxe Outlet Ambience
The ambience inside cafes is both stresses relieving and calming. With appropriate background music, reclining furniture design, etc., the label offers an ideal atmosphere to calm the mind while also working on projects.
Higher Output in Hardly Any Time
It functions on an approach to appreciate and gratify every client of every store, which served as the label’s USP in generating high results. Various snacks provided by the company, such as Maggie, Sandwich, Wada pav, etc., have also attributed to its faithful and repeat clients. The label has achieved the rapid accomplishment of its tactic of combining creativity, innovativeness, and exploring with chai that surpassed expectations.
Advanced Response Framework
It has incorporated a well-defined task control program that integrates usual customer reviews, prompt actions on bad reviews, and so on. The team is well-educated and well-trained.
Diversified Menu
It offers a diverse selection on its menu. Originally serving various flavoured teas, the brand has since augmented to serve a variety of snacks and meals to both Indian and foreign clients. They also use Kulhads to serve chai in an environmentally friendly manner.
Within a quarter of the company’s launch, each store begins to profit. That year, the company’s sales increased by 30%, which includes total sales of chai and nibbles, i.e., about 4–4.5 lakh cups, i.e. approximately 2 lakh units. It made Rs 52 crore in income in FY18.
The label also makes money by serving chai on demand, which accts for 20% of total earnings. They also supply approximately 300 boxes of bundled chai blends weighing 100 gm each. The cost for each box is Rs 200.
Chaayos – Challenges Faced During Covid-19
Eateries were struggling financially due to low foot traffic and rising rents. Few were working on a revenue-sharing rental contract; instead, some were returning to the local shops. Many people prefer food delivery because buyer complacency is lower in this case.
These difficulties have not spared Chaayos. The shops were closed for the entire span of the quarantine, and in-store sales were still marginal. However, the online ordering biz restored to 40% of pre-COVID levels. Regardless of the difficulties, its kept its stores open.
Rent agreements have played a significant role in keeping it stable. Well before the pandemic, 40% to 45% of its shops had a revenue-sharing agreement for lease, which was beneficial in this scenario. Even where there’s no income sharing contract, Chaayos has requested exemptions because the landlords don’t have several bidders for these spots in that situation.
It has created an online delivery app to help people in pre-ordering and thus avoid long lines. Because of the strong tech involved, they’ve been able to easily transform into contactless operations.
Chaayos – Funding and Investors
In eight investment rounds, Chaayos has raised $85.5 million as of June 13, 2022.
Here is the company funding details:
Date
Stage
Amount
Investors
Jun 13, 2022
Series C
$45 million
Alpha Wave Ventures
Feb 11, 2020
Series B
$18.5 million
Think Investments
Feb 11, 2020
Debt Financing
$3 million
InnoVen Capital
Sep 5, 2018
Series B
$12 million
Elevation Capital, Integrated Capital
Oct 13, 2017
Series A
$2 million
Tiger Global Management
Aug 31, 2016
Series A
–
–
May 19, 2015
Series A
$5 million
Tiger Global Management
Jul 2, 2014
Seed Round
$333K
–
Chaayos – Investments
To date, Chaayos has invested in just one company. On May 31, 2022, it made an $1.5 million seed round investment in Fitelo.
Chaayos – Growth and Financial
Its adventure began by starting its very first shop in DLF Cyber City in Gurgaon, Delhi. They operates with 200+ stores in Mumbai, Delhi, Bangalore, Pune, Hyderabad, Chennai. As of 2015 news report, between 4,500 and 5,000 walk-ins per day visit Chaayos 11 locations. Company has strong 1,001-5,000 number of employees.
Financial
Chaayos Financial
Chaayos Financial
FY22
FY23
Operating Revenue
Rs 135 crore
Rs 237 crore
Total Expense
Rs 211 crore
Rs 349 crore
Profit/Loss
Loss of Rs 71 crore
Loss of Rs 95 crore
Expenses
Chaayos total expenses rose from Rs 211 crore in FY22 to Rs 349 crore in FY23.
EBITDA
Chaayos FY22-FY23
FY22
FY23
EBITDA Margin
-41%
-27%
Expense/Rupee of ops revenue
Rs 1.56
Rs 1.47
ROCE
-75%
-29%
Chaayos – Marketing Strategy
The advertising tactic of Chaayos involves both offline and online promotional tactics. For virtual advertisements, the brand makes good use of digital marketing tools such as social media and e-mail marketing. Buyers near stores or walk-ins are the focus of its offline marketing plan. Its loyalty program is for satisfied clients, and this advert applies to all stores.
Online
It is utilizing an online media forum for its promotions, i.e., brand visibility and customer acquisition to improve customer care. This is also their strongest asset, as they manage client queries swiftly and effectively. The following are some of the online platforms that the firm uses for promotions:
Facebook
With good number of fans and supporters, its Facebook page which was initiated in 2012, is now the absolute forum for its marketing events. Chaayos uses this platform to connect with its audiences by allowing them to share ideas, recommendations, tales, etc. in an open chat forum. The label also promotes its activities on this virtual media site.
Instagram
It communicates with its customers and fans via Instagram. With a good number of Instagram fans, they’re using this online media tool for a variety of adverts. It frequently posts pictures of various famous visitors or celebs who visit their stores, as well as styles and displays e-cards for festive purposes.
Chaayos Instagram
Twitter
It also has a Twitter following. The label deals with customer inquiries on this app daily. It also serves its users with e-coupons for new tea varieties, and supporters or clients can create their customized tea with Chaayos tea packs and tell their stories on Twitter. The company launched a Twitter hashtag called Experiments with Chai that has increased its clientele in Chaayos stores by 25%.
Chaayos Twitter
YouTube
It makes good use of YouTube for promotions. To connect with people, brand innovators share their insights and progress stories regularly via short video clips on the channel.
Offline:
Aside from the aforementioned, Chaayos also conducts promotions with fitness centers and supermarkets.
Chaayos – Advertisements and Social Media Campaigns
Chaayos Campaign
Chaayos mein Tai Chai? #AisaBhiHoSaktaHai
The Chai Frappe is a new summer beverage from Chaayos, with the equally distinctive and energizing campaign hashtag #AisaBhiHoSaktaHai. With an unorthodox take on what to expect at Chaayos, the #AisaBhiHoSaktaHai campaign challenges stereotypes and encourages people to think beyond their constraints while celebrating creativity and ingenuity.
Chaayos – Competitors
Its direct rivals are Chai Point and Chai Sutta Bar. The company’s competitiveness over its rivals is based on its deluxe ambience of stores, efficient delivery, better results in a shorter timeframe, fully personalized products, and a diverse menu for both Regional and Global tastes.
Within the next three years, it intends to grow from 90 to 300 cafés. Expansion, on the other hand, can be difficult to manage in the food industry. Many companies experience lower client satisfaction as their retail footprints expand due to inconsistency or poor service. Chaayos, on the other hand, has invested in new tech to assure that uniformity is not a concern.
Nitin Saluja and Raghav Verma are the founders of Chaayos.
When was Chaayos started in India?
Chaayos was founded in 2012 by Nitin Saluja and Raghav Verma.
What is special about Chaayos?
Chaayos has many chai flavours, the company experiments with different chai flavours. Also, it offers a unique ambience in its cafés to its customers which is calming and stress relieving.
Delhi is making great strides in its journey to become the hottest startup destination in India with more than 1500 startups. The list given below discusses some of the most successful startups in Delhi that are in the process of leaving a lasting impact.
Before proceeding, if you know about any other startup in Delhi that can or is making a difference, please let us know in the comments below. We would love to cover them in this post.
You can also go through the list of startups in Lucknow, Gurgaon, and Goa.
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Founders: Deepinder Goyal, Pankaj Chaddah, and Gaurav Gupta Founded in: 2008 Industry: Food Delivery
Zomato – Startups in Delhi
Zomato was initially launched as Foodiebay, an online marketplace to search for and review restaurants. As of now, Zomato is the biggest food delivery business in India and is counted among the best organizations across the globe in this domain. If you’re a hardcore foodie, chances are you would have already used Zomato’s services. Zomato is operational in over 20 countries and is adding new destinations to its list with passing time. It has also ventured into events and grocery sourcing for restaurants. With over millions of dollars in funding, the company stood at a valuation of approximately $3.6 billion in 2019 as per HSBC.
Zomato (Foodiebay) was founded by Pankaj Chaddah, Gaurav Gupta, and Deepinder Goyal in 2008. Deepinder came up with the idea of Foodie bay seeing his colleagues consistently ask for paper menu leaflets of different restaurants for ordering food. The solution was an app which digitized these paper menus and leaflets, making it easier to browse through the menus of different restaurants from the comfort of one’s phone.
Founders: Azhar Iqubal, Anunay Arunav, and Deepit Puryakshatha Founded in: 2013 Industry: Media
Inshorts – Top Startups in Delhi
Inshorts aggregates trending news from different sites such as the Economic Times, TOI, The Hindu, etc. into crisp 60-words pieces for readers who can’t spare time for detailed news content. Inshorts also provides personalized news based on an individual’s preferences. Its AI engine intuitively understands what you like reading and delivers more of that in a single feed. Inshorts, in short (pun intended), is the perfect solution for a quick dose of the events happening around you. It has received over $20 million in funding from Sachin and Binny Bansal, the founders of Flipkart.
The trio of Azhar Iqubal, Anunay Arunav, and Deepit Puryakshatha started Inshorts in 2013. Anunay did his M.Tech from IIT Delhi and Deepit did his Master’s from IIT Kharagpur. Azhar, on the other hand, is an IIT Delhi dropout.
Founder: Kunal Bahl Founded in: 2010 Industry: Ecommerce
Snapedeal – Top Startups in Delhi
Snapedeal is one of the biggest startups to have emerged out of Delhi. It was founded by Kunal Bahl in 2010 as a platform for daily deals and coupons. After tasting success, the founder thought of expanding the company further as an online e-commerce store in 2011. Snapdeal received its first round funding in 2011; it was $12 million from Nexus Venture Partners and Indo-US Venture Partners. The company is facing a downfall in sales at the moment. However, it is still counted among the top 10 e-commerce ventures in India.
Founders: Bipin Preet Singh and Upasana Taku Founded in: 2009 Industry: Fintech
MobiKwik – Top Startups in Delhi
MobiKwik is one of the most prominent Indian SaaS startups. MobiKwik is a virtual mobile wallet usable at more than 2,50,000 online and offline avenues. It was founded by the husband-wife duo of Bipin Preet Singh and Upasana Taku. MobiKwik sees an average transaction size of INR 700. The company claims to be growing at a steady rate of 20 percent MoM, which is a tad lower than the growth rate observed during demonetization. The company was bootstrapped with Bipin investing $250,000 of his own. Since then, MobiKwik has received a total of over $115 million through 6 rounds of funding.
Founder: Sanchit Garg Founded in: 2015 Industry: Herbal/Ayurveda
Green Cure – Top Startups in Delhi
Green Cure Wellness manufactures herbal personal care items and health care products of international quality. Green Cure has a team of scientists in Germany who develop high-quality formulations which are as per European norms. It has another team of Ayurvedic specialists in India who make sure that these products are in line with Indian needs.
Green Cure Wellness is a bootstrapped startup. The raw materials are sourced from Germany and Australia from companies with proprietary technology. These ingredients also have international certifications like NPA, Cosmos Ecocert, ISO, WHO-GMP, Kosher, NOP, and HACCP.
Founder: Kevin Mittal Founded in: 2008 Industry: Social Media
Hike – Top Startups in Delhi
Hike is a messaging app-cum-social network. Hike messenger was one of the top social media startups in India. The company was the idea of Kavin Mittal. Kavin Mittal did his master’s from Imperial College, London. He is the son of Bharti Enterprises’ founder and chairman, Sunil Mittal. Hike raised its first funding of $7 million from Bharti and Softbank. It received another $14 million from the same investors. Since then, Hike has raised more than $200 million, mainly from Tiger Global, Tencent, and Foxconn.
Founder: Sahil Chalana Founded in: 2014 Industry: Edtech
Collegedunia – Top Startups in Delhi
Collegedunia is a college search engine helping students find the perfect institution. Collegedunia gathers and maintains information on higher education both in India and abroad. It claims to feature more than 20,000 colleges, institutes, and universities, along with data on one million fees structures on its platform.
Sahil Chalana started Collegedunia in 2014. Sahil graduated from BITS Pilani. He bootsrapped Collegedunia as a lead generation platform for educational institutes. He then received a funding of INR 1 crore from Umang Kumar.
Zostel is a Delhi-based startup and India’s first chain of backpackers’ hostels offering secure, hygienic, and pocket-friendly accommodation. It’s the go-to place for wanderlust backpackers on a pocket-friendly budget. Since its inception in 2013, Zostel has expanded its network to cover 20+ Indian cities.
Founders: Gaurav Kapahi and Nishchal Khetarpal Founded in: 2016 Industry: Tech-Entertainment
GoldSeat – Top Startups in Delhi
GoldSeat provides bus travel facilities and WiFi-connectivity on buses. It offers two great ways to access seamless offline entertainment. First, it offers free WiFi to passengers inside the bus. The second way is through a wide collection of movies that travellers can access either on the GoldSeat screens installed in the bus, or on one’s mobile by downloading the GoldSeat app.
In June 2018, GoldSeat raised $ 3 million in funding. GoldSeat recently collaborated with Railyatri.in for the latter’s ‘Intercity Smart Buses’. It currently offers services to private players across Northern and Western regions, including Lucknow, Ahmedabad, Delhi, and cities in Haryana, Himachal Pradesh, Uttar Pradesh, Uttarakhand, Gujarat, Punjab, Rajasthan, and Karnataka.
Founders: Nitin Saluja and Raghav Varma Founded in: 2012 Industry: Food delivery
Chaayos – Top Startups in Delhi
Chaayos is an online tea delivery and cafe chain launched out of Delhi. The company focuses on providing authentic beverages at economical prices. Chaayos is for all those ‘Chaifreaks’ (not forgetting the coffee lovers) wanting the best sip out of their cup.
With Starbucks and Cafe Coffee Day seen as “ameer laundo ki jagah” (Hindi phrase for “place for the rich”), Chaayos ensures that the Indian middle-class population doesn’t feel left out. The company has established its chain of cafes in 6 Indian cities since starting out in 2012.
Founder: Sameer Aggarwal Founded in: 2018 Industry: Fintech
Revfin – Top Startups in Delhi
Revfin is a financial technology (Fintech) startup. Revfin is building the world’smost advanced digital lending platform. The platform will be used to underwrite and manage consumer loans to finance clean technologies through its NBFC.
Revfin provides two types of loan: 1. Regular personal loan: This loan can be taken for a variety of purposes and is paid back in equal monthly installments. 2. RevLoan: An unsecured credit limit that you can use as and when needed. You can withdraw any amount in denominations of INR 1000 up to your credit limit.
Investors in Revfin are Harash Jain (CEO, Litejoy International and UK-based businessperson), Anil K Goyal (Founder, Anil K Goyal and Associates), Anil Lanba (Senior Technology Executive, EVP Pyramid Consulting), and Krishan B Singh (Investor based in New York).
Dogspot
Founder: Rana Atheya Founded in: 2007 Industry: Ecommerce
Dogspot | Top startups in Delhi
Online food delivery for people sounds too mainstream, right? Dogspot has disrupted this segment by making it possible for dog owners to have food for their pets ordered online. Dogspot is India’s largest online store for pet supplies. This Delhi-based startup has redefined pet care, making pet ownership as easy as cracking an egg.
Founders: Sachin Bhatia, Hitesh Dhingra, and Rahul Kumar Founded in: 2013 Industry: Dating App
TrulyMadly | Top startups in Delhi
The Indian version of Tinder, Trulymadly is considered the best dating and matchmaking app in India. Unlike Tinder and other dating apps where the results are overwhelmed with hundreds of useless matches, TrulyMadly showcases only up to 10 results. The app requires you to fill up your profile through a series of questionnaires and based on the results, it links you to the ideal partner.
Founders: Shreya Mishra, Pranay Surana, and Tushar Saxena Founded in: 2015 Industry: Fashion
Flyrobe | Top startups in Delhi
The startup wanted to do something different. It wanted to explore a niche that wasn’t over-exploited. Flyrobe chose to offer rental of clothes for weddings and other occasions. It has an excellent range on offer, one that’s full of high-quality, reliable material. Flyrobe has also partnered with the big labels like Ritu Kumar, Masaba Gupta, and others. It has achieved a milestone of more than 5,00,000 app downloads.
Founders: Ruchi Gupta, Dr. Ravinder Pal Singh Malhotra, and Dr. Gurdeep Singh Ratra Founded in: 2016 Industry: Healthcare
3Hcare | Top startups in Delhi
3Hcare is an online marketplace for healthcare services. It provides detailed information on the healthcare services available PAN India. User can simply log on to 3Hcare’s website and find diagnostics clinics and hospitals.
3Hcare provides two services: Diagnostics – Over 1500 labs and test centers (NABL accredited) from 50+ locations throughout India. Plan My Surgery – An innovation by which patients can plan their surgeries with the best of surgeons at viable costs and schedule. Moreover, a price comparison feature is available, and the patient is also able to seek time- availability and appointment with the best-in-class doctors and hospitals.
3Hcare received an angel funding of INR 65 lakhs within 11 months of its inception. The funds were used to develop the IT infrastructure and enhance other services. 3Hcare also raised $1 million in its second round of funding.
Ikka Dukka
Founders: Enda Noone and Nilisha Kholi Industry: Handicrafts
IkkaDukka | Top startups in Delhi
The duo started the company in Delhi with a goal to curate a brand of artistic handicraft to prevent this cultural and heritage skill from fading into oblivion. The two took a sabbatical from work and began working on Ikka Dukka in 2013. Launched in 2014, Ikka Dukka sells exquisite, affordable collection of jewellery starting from INR 1,800. Ikka Dukka also sells home décor and bags. The Delhi startup is up-scaling the popularity of handicrafts.
Imperial Knots
Founder: Karan Kholi Industry: Textile
Imperia Knots | Top startups in Delhi
Imperial Knots is an e-commerce website selling rugs and carpets. All Imperial Knots products are representative of artistic designs, aesthetic colors, and comfort while offering high standard floor coverings for your homes. The brand offers over 5,000 exclusive designs and is relentlessly creating new designs in line with changing market trends. Its flat weave rugs and hand-tufted modern carpets have attained immense popularity in recent years. The company has tie-ups with various websites such as Pepperfry, Amazon, Urban Ladder, and Ikka Dukka for showcasing its products.
Wingify
Founder: Paras Chopra Founded in: 2010 Industry: Software Development
Wingify | Top startups in Delhi
Wingify provides a ‘visual website optimizer’ to assist marketing professionals and increase sales and conversions on their websites using techniques such as A/B testing. Wingify is offering a multivariate testing tool to deal with behavioural targeting, tracking visitors, usability testing, etc.
LimeTray
Founder: Akhilesh Bali and Piyush Jain Founded in: 2013 Industry: Information Technology & Services
Limetray | Top startups in Delhi
LimeTray is complete restaurant management platform. It a one-stop shop for everything a restaurant needs to grow, right from the technology to data-driven consulting services. LimeTray makes it easier for restaurants to tap into the customer base that lives online. The startup’s founding team consists of ISB and NSIT alumni with strong-domain knowledge; they built one of the largest online food-ordering portals prior to this venture.
So this was our list of some successful startups in Delhi. Do share it on your social media profiles and tag us and your favorite startup from this list!
FAQs
What are the most successful startups in Delhi?
Most successful startups in Delhi are listed below:
Zomato
Inshorts
Snapdeal
MobiKwik
Green Cure Wellness
Hike
Collegedunia
Zostel
GoldSeat
Chaayos
Revfin
Dogspot
TrulyMadly
Flyrobe
3Hcare
Ikka Dukka
Imperial Knots
Wingify
LimeTray
How many startups are there in Delhi?
There are more than 1500 Startups in Delhi.
What are the best startups in India?
Top startups in India are:
AirBnB
Dunzo
Udaan
Byju’s
Zest Money
Cure. Fit
Razorpay
PharmEasy
Nykaa
What is the best business to start in Delhi?
Some of the best business to start in Delhi are:
Printing Business
E- commerce Business
Website designing
Interior Designing
Tutoring
Which are Delhi based startups that became Unicorn?
Anamika Mahapatra
