Funding Alert

Chaayos Raises $53 Mn In Series C Funding Led by Alpha Wave Ventures

• ByStartupStory     |    June 23, 2022

On June 23, Leading Tea-cafe chain Chaayos said that it has secured $53 million in Series C funding headed by Alpha Wave Ventures. The company claimed it will use the funds for hiring, store expansion, and technological advancement. Existing investors Elevation Capital, Tiger Global, and Think Investments took part in the most recent round.

The company will use the new funding to increase hiring across several industries and to expand its technological infrastructure. According to a release, the investments will also be used to spread out the physical store’s footprint over other locations. Also by the end of 2022, Chaayos also aims to open 100 more physical stores.

“The most recent capital round will assist us in deepening our technological investments to improve our guests’ experiences and create a well-known brand that will be a vital part of Indian society for decades to come. As always, we’ll expand our cafe’s geographic reach, go further into the locations where we already have a presence, and look into new markets.  We are also constantly looking to employ people to handle the scale that we aspire,”  The CEO of Chaayos, Nitin Saluja, added, We are also constantly looking to employ people to handle the scale that we aspire to.

Saluja and Raghav Verma started Chaayos in 2012, which sells a variety of teas and prepared foods. Along with many other SKUs, the omnichannel platform sells its pre-packaged snacks through both offline and online marketplaces. 45 per cent of the startup’s revenue comes from online tea deliveries. In February 2020, the cafe chain has raised $21.5 Mn through debt and equity. It had secured $12 Mn in September 2018 from numerous venture capital (VC) companies, including SAIF Partners and Integrated Capital, among others.

In February 2020, the cafe chain has raised $21.5 Mn through debt and equity. It had secured $12 Mn in September 2018 from numerous venture capital (VC) companies, including SAIF Partners and Integrated Capital, among others. 190 outlets are currently operated by the startup in 6 cities, and it uses cutting-edge technologies like artificial intelligence (AI) and the internet of things (IoT). In the tea market, the chain primarily competes with Chai Point; however, in the wider cafe market, it also faces competition from companies like Starbucks, Costa Coffee, and others.

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