The 130-store specialty coffee group is targeting annual revenues of Rs 10bn ($118.5m) before a potential IPO bid
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The interior of a Blue Tokai outlet in Pune, Maharashtra | Photo credit: Blue Tokai Coffee Roasters
Gurgaon-based Blue Tokai Coffee Roasters is seeking a near three-fold increase in annual revenues by 2027 as it gears up for a public listing.
The specialty coffee group’s CEO Matt Chitharanjan told Reuters that it is targeting yearly revenues of Rs 10bn ($118.5m) in two years’ time – up from previously projected Rs 3.7bn ($43.8m) sales in 2024. Healthy sales and profit margins would make Blue Tokai “an attractive IPO candidate”, he added.
However, Blue Tokai’s investors are not pushing for an early IPO, Chitharanjan said, adding “market conditions will fluctuate, and we are more concerned about our internal goals”.
Founded in 2013, Blue Tokai currently operates 130 stores across India and opened its first international venue in Tokyo, Japan, in July 2024. The specialty coffee roaster and café chain plans to operate 350 outlets within the next three years, with the Indian cities Hyderabad and Chennai cited as key domestic growth markets.
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Blue Tokai has raised $81m to date, including a $30m Series B funding round in January 2023 and a $35m Series C funding round in September 2024. Its backers include Brussels-based venture capital group Verlinvest and Indian investment firms A91 Partners and Anicut Capital.
Investment in India’s branded coffee shop market has increased over the last two years, with homegrown chains Third Wave Coffee, abCoffee and Subko Coffee Roasters among those receiving major funding to fuel growth.
Additionally, market leader Tata Starbucks and a growing number of international chains, including Costa Coffee, Tim Hortons and Pret A Manger, have outlined significant outlet growth plans in India as they seek to tap into increasing consumer demand for premium café experiences.
Tata Starbucks, 50:50 joint venture between US coffee giant Starbucks and Tata Consumer Products Limited, posted sales of Rs 12.2bn ($146m) in the 12 months ending 31 March 2024 while Costa Coffee, which reached 200 stores in India last quarter, posted Rs 1.5bn ($18.2m).