India’s Café Coffee Day sees revenues rise but continues to close stores

Café Coffee Day now operates 450 stores across India | Photo credit: Café Coffee Day/Facebook

India’s Café Coffee Day (CCD) achieved double-digit revenue growth last year but continues to close stores in a bid to manage heavy debt. 
 

The Bengaluru-based coffee chain posted a 10% increase in net revenue in the 12 months ending 31 March 2024 to reach Rs 1,013 Cr ($120.6m).  

While rising year-on-year, CCD’s full-year sales remain below the Rs 1,653 Cr ($197m) achieved in 2019. 

CCD’s net debt now stands at Rs 881 Cr ($105m) compared to Rs 1,524 Cr ($181.5m) during the previous 12 months. 

At its peak in 2019, CCD operated 1,752 outlets across 243 Indian cities. However, the coffee chain began to shutter dozens of stores in the wake of Rs 7,000 Cr ($833.6m) debt and the apparent suicide of its founder V.G. Siddhartha in July 2019.  

CCD closed a further 19 stores across the last 12 months and now operates 450 sites – a figure Tata Starbucks and Haryana-based Barista both expect to surpass this year as they seek to add to their respective 444 and 420-store networks. 

At its peak in 2019, CCD operated 1,752 outlets across 243 Indian cities. However, the coffee chain began to shutter dozens of stores in the wake of Rs 7,000 Cr ($833.6m) debt and the apparent suicide of its founder V.G. Siddhartha in July 2019. 

The coffee chain has been led by Siddhartha’s wife Malavika Hegde since December 2020, and who has been credited for significantly reducing the company’s debt. 
 

While the rate of retail outlet closures has significantly slowed over the last two years, CCD has also grown its network of coffee vending units across India. Primarily located within corporate offices, business hubs and hotels, CCD’s total vending machine network grew 8% year-on-year to reach 52,581 units last year. 

Read related content: All rise for India’s fast-growing coffee industry 

Founded in 1996 by Karnataka-born entrepreneur VG Siddhartha, CCD was a pioneer of India’s coffee and cafe culture. With the tagline ‘a lot can happen over coffee’, for years CCD was one of the only operators in the country serving espresso-based beverages in third-place styled environments at scale.   
 

However, CCD now faces significant competition from both international and domestic coffee chains, many of which have courted significant investment to scale their operations in India’s fast-growing food and beverage market.   

In September 2023, Bengaluru-based Third Wave Coffee raised $35m in a new private equity round led by Creaegis. The following month, small-format operator abCoffee raised $2m seed funding to accelerate the roll-out of its quick-service, on-the-go concept, before receiving a further $3.4m in March 2024 to continue building its 65-store network. 

Additionally, Indian specialty coffee roaster and café chain Blue Tokai Coffee Roasters raised $35m in a September 2024 Series C funding round led by Brussels-based venture capital firm Verlinvest. The investment comes less than two years after the 130-store business raised $30m to increase its Indian store footprint and enhance its B2B presence.