Chaayos, the Delhi NCR-based tea-cafe chain, witnessed a remarkable surge in its operating revenue. In FY23, the figures soared by 77%, reaching INR 239 Crores, a substantial increase from the INR 135 Crores reported in FY22.
Factoring in additional income, the startup achieved a total revenue of INR 253.4 Crores in FY23, marking an 81% rise compared to the INR 140.1 Crores reported in FY22.
Established in 2012 by Nitin Saluja and Raghav Verma, Chaayos specializes in the sale of tea and food items. In addition to its proprietary cafes, the startup utilizes online marketplaces as a channel to distribute its products.
Experiencing a 34% surge in its net loss for the fiscal year concluding on March 31, 2023, the startup recorded a net loss of INR 96 Crores, up from INR 71 Crores in FY22, primarily attributed to increased cash burn.
In FY23, the startup witnessed a 65% rise in its total expenditure, reaching INR 348.9 Crores, as compared to the INR 211.4 Crores reported in the preceding fiscal year.
The tea-cafe chain allocated INR 86.4 Cr for raw material procurement in FY23, reflecting a 62% increase from the INR 53.2 Cr spent in FY22. This category of expenses constituted 25% of Chaayos’ overall costs in FY23.
Operating a nationwide cafe chain necessitates a substantial workforce, evident in the startup’s comprehensive employee costs. Employee benefit expenditures surged by 53%, reaching INR 77.7 Crores in FY23, compared to INR 51 Crores in the preceding fiscal year.
Operating a network of more than 200 cafe outlets, Chaayos experienced a significant 63% increase in rent costs, rising to INR 46 Crores in FY23 from INR 28.3 Crores in the preceding year. It is noteworthy that the startup’s cafes are predominantly situated in prime locations within metro cities, where commercial space rents tend to be higher.
Since its establishment, Chaayos has secured approximately $85 million through various funding rounds, boasting notable backers such as Tiger Global, Alpha Wave, and Elevation Capital. The latest injection of funds occurred in its Series C funding round, where Chaayos raised $53 million.
The startup competes directly with counterparts like Chaipoint, Chai Sutta Bar, and MBA Chaiwala. Furthermore, it engages in indirect competition with coffee chains like The Third Wave Coffee, Blue Tokai, and Starbucks.
