Tamil Nadu-based tea chain Chai Kings has raised ₹24 crore ($3 million) in a Series A funding round led by A.V. Thomas and Co. (AVT), a major player in the tea industry. This marks a significant step forward for the fast-growing brand, which had previously raised ₹8 crore ($1 million) in seed funding from investors including The Chennai Angels, Hyderabad Angels, and TiE Angels.
Chai Kings: Brewing a Revolution Since 2016
Launched in 2016 by Jahabar Sadique and Balaji Sadagopan, Chai Kings has positioned itself as a go-to destination for premium yet affordable tea. The brand offers an extensive selection of chai, from classics like masala and ginger chai to specialty blends like saffron chai and Kashmiri Kahwa. Their menu also features black, herbal, green, and iced teas, bubble tea, hot and cold chocolates, and milkshakes—making it more than just a tea joint.
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According to Balaji Sadagopan, COO of Chai Kings, this latest funding round will allow them to scale operations rapidly.
“Our goal has always been to bring top-quality chai to every corner of the country. With AVT’s backing, we can accelerate expansion while ensuring the same exceptional quality and service that our customers love.”
Scaling Up: Expansion Plans and Market Strategy
Chai Kings is gearing up for a major expansion, with plans to open 65 new outlets across Chennai, Bengaluru, Hyderabad, and Coimbatore. The brand currently operates 57 stores across Chennai, Hyderabad, and Coimbatore and is aiming to double its revenue over the next two years.
The company is also focusing on strengthening its supply chain and enhancing digital engagement to better serve its growing customer base. Nearly 45% of its revenue comes from food delivery platforms, and it has partnered with Swiggy’s 10-minute delivery service, Bolt, for select menu items.
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“We are thrilled to welcome A.V. Thomas and Co. as our investor and strategic partner. Their deep-rooted experience in the tea business aligns perfectly with our vision of making premium chai accessible to every Indian,” said Jahabar Sadique, Co-Founder & CEO of Chai Kings.
“This funding will allow us to scale operations, open more stores, and introduce new innovations, further solidifying Chai Kings’ position as a leader in the tea café segment.”
Revenue Projections and Future Outlook
Chai Kings currently generates monthly revenues of ₹4-4.5 crore and is on track to achieve ₹48 crore in revenue for FY25, with a positive EBITDA.
Ajit Thomas, Executive Chairman of AVT, expressed confidence in the brand’s trajectory:
“Chai Kings has built a strong brand with a loyal customer base. We see immense potential in their expansion plans and are excited to support them in their journey.”
With fresh funding in hand, Chai Kings is set to shake up the tea café space, offering a blend of tradition and innovation that resonates with modern India’s tea-loving audience.
