Chennai-based chai retail chain Chai Kings has raised $3 million (Rs 24 crore) in its Series A funding round from A.V. Thomas and Co. (AVT). The investment will be utilized to accelerate the brand’s expansion, enhance product offerings, and strengthen its supply chain. A portion of the funds will also go towards customer engagement and improving operational efficiencies.
As part of this round, The Chennai Angels (TCA) are making a partial exit with substantial returns. Earlier in January 2020, Chai Kings had raised $1 million in its seed round from investors including Chennai Angels (TCA), Hyderabad Angels, and TiE India Angels.
Growth and Expansion Plans
Founded in 2016 by Jahabar Sadique and Balaji Sadagopan, Chai Kings has built a reputation for offering a premium and hygienic chai experience. The brand serves a diverse range of high-quality tea blends with a strong focus on sustainability and customer satisfaction. Currently, it operates 57 stores across Chennai, Hyderabad, and Coimbatore.
Looking ahead, Chai Kings aims to close FY25 with a revenue of Rs 48 crore, achieving positive EBITDA. The company also has ambitious plans to double its revenue over the next two years while maintaining profitability.
With this fresh infusion of capital, Chai Kings is well-positioned to scale its operations and further strengthen its presence in India’s growing chai retail market.
