Indian coffee chain Blue Tokai is targeting a threefold increase in annual revenue by 2027, reaching INR 10 billion, according to CEO and co-founder Matt Chitharanjan.
Blue Tokai to run 350 cafes in 3 years
The company plans to expand its footprint in India’s growing INR 25 billion specialty tea and coffee cafe market by opening 350 cafes in cities like Hyderabad and Chennai within three years.
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Currently operating over 130 cafes, Blue Tokai has the backing of Belgian investment firm Verlinvest. “Our revenue run rate for this year is INR 3.7 billion, and we are targeting INR 10 billion by 2027,” Chitharanjan said.
An initial public offering (IPO) is part of the company’s long-term plans but not a current focus. “Market conditions will fluctuate, and we are more concerned about reaching our internal goals. Healthy profit margins will make us an attractive IPO candidate,” he added, noting that Blue Tokai’s patient investors are not pushing for a quick market debut.
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Blue Tokai nets $81 Mn
India’s coffee culture is expanding, driven by affluent urban consumers using cafes for work and meetings. Major players like Tata Starbucks, Costa Coffee, and McDonald’s McCafe are scaling operations. Despite competition, Chitharanjan is confident. “We’re not at a stage of the market where there’s a lot of competitive pressure. It’s more about growing the overall market pie, rather than stealing share from each other,” he said.
Since its inception in 2013, Blue Tokai has raised $81 million and focuses on long-term growth in the specialty coffee segment.
