Bengaluru based Popular beverage chain Chai Point raises USD 20 million Series C funding round, led by Paragon Partners, which will be allocated towards spurring its growth in India.
Founded in 2010, Chai Point is an organized brand in the Rs.1.5 Lakh crore tea market targeting one billion Indians. With the average per capita consumption of the beverage increasing at a steady rate of 20-30 percent, the market is ever expanding.
The company, who offers nearly 0.3 million cups of Chai a day across all its channels, stores, delivery, and dispensers is poised to do five-fold more in the next three years.
“This funding round is primarily aimed at further strengthening the brand’s multi-channel go-to-market. A substantial portion of our investment proceeds will go towards deepening our sales, marketing, and service operations for our automated hot beverage dispensing business boxC.in which is the next growth driver for the business. High-quality tea and coffee are fundamental to our growth and we are going to expand and refine our underlying sourcing program “Garden to Glass”.
Also, we look forward to delighting our customers with an especially enhanced food menu,” said Amuleek Singh Bijral, Co-founder, and CEO, Chai Point.
Siddharth Parekh, Co-Founder and Senior Partner of Paragon Partners, the prime investor in this round, will be joining the Chai Point’s Board of Directors.
Chai Point has a presence in eight Indian cities with presence across retail locations, airports, and business parks. In addition to physical format stores, the chain has a delivery service branded as ‘Chai-on-call’ and a vending kiosk-based solution called ‘BoxC.in’ focused primarily on corporations.
As of October 2017, the company also started selling their teas on Amazon.in, making it their first foray into distribution via the e-commerce platform.