India’s Chai Kings secures $3m to drive outlet growth

Chai Kings currently partners with third-party delivery platforms Swiggy, Zomato and Bolt | Photo credit: Chai Kings/Facebook

Chennai-based tea chain Chai Kings has raised Rs 24 Cr ($3m) in a Series A funding round.  
 

In a press release, Chai Kings said the funding from Indian packaged tea company A.V. Thomas and Co. (AVT) will support outlet expansion across Southern India, strengthen its supply chain and widen its delivery reach.  

Chai Kings’ partners with third-party platforms Swiggy, Zomato and Bolt to facilitate deliveries, which currently make up 45% of the chain’s sales. 

“We are thrilled to welcome A.V. Thomas and Co. as our investor and partner in this journey. Their deep-rooted expertise in the tea industry aligns perfectly with our vision of serving premium chai experiences at an affordable cost across India,” said Jahabar Sadique, CEO, Chai Kings. 

Founded in October 2016, Chai Kings currently operates 57 stores across Chennai, Hyderabad and Coimbatore and plans to use new funding to open a further 65 outlets across the three cities as well as a first site in Bengaluru. 

Chai Kings forecasts it will achieve full-year revenues of Rs 48 Cr ($5.6m) for the 12 months ended 31 March 2025 and expects to double that figure by 2027.  

The value-focused operator serves a variety of Indian tea blends, including masala chai, ginger chai, saffron chai and Kashmiri Kahwa, alongside filter coffee and a range of iced teas, bubble teas, hot chocolates and milkshakes.   

AVT’s investment marks a partial exit from Chai Kings’ early backers The Chennai Angels (TCA).