Delhi NCR-based tea-cafe chain Chaayos saw its operating revenue increase 77% to INR 239 Cr in FY23 from INR 135 Cr in FY22.
Including other income, the startup’s total revenue stood at INR 253.4 Cr in FY23, an increase of 81% from INR 140.1 Cr it reported in FY22.
Founded in 2012 by Nitin Saluja and Raghav Verma, Chaayos sells tea and food products. Besides its own cafes, the startup leverages online marketplaces to sell its products.
The startup witnessed a 34% increase in its net loss in the financial year ended March 31, 2023. The startup’s net loss rose to INR 96 Cr during the year under review from INR 71 Cr in FY22 on higher cash burn.
Where Did Chaayos Spent?
The startup’s total expenditure increased to INR 348.9 Cr in FY23, a jump of 65% from INR 211.4 Cr in the previous fiscal year.
Procurement Cost The Biggest Expense: The tea-cafe chain spent INR 86.4 Cr on the procurement of raw materials in FY23, an increase of 62% from INR 53.2 Cr in FY22. Procurement costs accounted for 25% of Chaayos’ overall expenses in FY23.
Employee Benefit Expenses Rise: Running a countrywide cafe chain involves hiring a lot of employees, which was reflected in the startup’s overall employee costs. Employee benefit expenses increased 53% to INR 77.7 Cr in FY23 from INR 51 Cr in the previous fiscal year.
Rent Costs Jump: Chaayos, which operates over 200 cafe outlets, saw its rent costs zoom 63% to INR 46 Cr in FY23 from INR 28.3 Cr in the previous year. It must be noted that the startup’s cafes are mostly located in the heart of metro cities, where the rent of commercial spaces is on the higher side.
Since its inception, Chaayos has raised around $85 Mn across multiple rounds and counts marquee names like Tiger Global, Alpha Wave, and Elevation Capital among its backers. It last raised $53 Mn in its Series C funding round.
The startup directly competes against the likes of Chaipoint, Chai Sutta Bar, and MBA Chaiwala. Indirectly, it competes against coffee chains such as The Third Wave Coffee, Blue Tokai, and Starbucks.
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