India’s Chai Point seeking IPO within two years

Chai Point currently operates 180 retail stores and a 5,000-strong brewing machine footprint across India | Photo credit: Chai Point

Bengaluru-based tea café chain Chai Point is planning to launch an initial public offering (IPO) within the next 18-24 months. 
 

Founded in 2010, Chai Point currently operates 180 retail stores and a 5,000-strong brewing machine footprint across India. 

The company leases its myChai brewing machines to third-party retailers and large corporate businesses, including Amazon, Intel and Microsoft. 

Chai Point CEO Amuleek Singh Bijral said corporate partnerships now comprise approximately 40% of sales, compared to 57% from retail. 

The company plans to install 30,000 myChai brewing machines across India within five years. 

“Over the past 18 months, we have invested heavily in technology, building brewing machines while increasing profitability. Our goal is to take the company public in about 18 to 24 months,” said Amuleek Singh Bijral. 

Chai Point, which has raised approximately $55m from investors to date, experienced a drastic fall in revenue in 2021. The adverse impact of the pandemic on in-store trade and office working led to a 70% decline in operating revenue from Rs 189 crore ($23.1m) to Rs 55.7 crore ($6.8m). 

Bijral said sales have returned to pre-Covid levels in cities including Mumbai, Chennai and Delhi. However, Bengaluru, its largest market, remains below 2019 revenues.