Tiger Global Management has invested $ 2 million in the Gurugram based tea cafe chain Chaayos, run by Sunshine Teahouse Pvt., Ltd. The fresh funds will be used for expanding the chain of tea cafes to 70 cafes in four locations.
According to a report by a news daily, a few individuals, including Ola co founders Bhavish Aggarwal and Ankit Bhati, also participated in this internal round of funding. The funds were raised through a rights issue which was closed a few weeks ago. Chaayos previously also raised $ 5 million from Tiger Management in a Series A funding round.
Founded by IIT alumni Nitin Saluja and Raghav Verma, Chaayos offers more than 25 varieties of tea. With flavors ranging from Shahi chai and Irani chai to international teas like chamomile and Moroccan mint tea, Chaayos works on the theme ‘Experiments With Chai.’ Powai Lake Ventures and Toppr.com founder Zishaan Hayath have also invested in the firm. They currently operate in over 30 outlets in Delhi, Noida, Gurgaon, Mumbai, Chandigarh, Ghaziabad and Karnal.
Speaking about the investment, co founder Nitin Saluja said, “Being the leader of the chai cafe market, we have continuously improved customer experience by investing heavily in product development, technology, and service. Chaayos is growing rapidly to reach the 50-cafe mark by end of this month.” He added that Tiger Global has been very supportive in their journey because of their strong fundamental growth.
According to Saluja, the company will be able to triple its revenue by expanding to 70 more locations. “This growth is coming on the back of strong same store sales growth and high customer repeat, thus making us cash positive,” he added.
Presently, many startups are operating in the Chai industry. Other players in this space include Chai Point, backed by Eight Roads Ventures, DSG Partners and Saama Capital, Delhi based Vahdam Teas and Chai Thela.