While the loss reduced, operating revenue rose a mere 4.89% to INR 248.6 Cr during the year under review from INR 237 Cr in FY23
Chaayos managed to reduce its total expenditure by 3.69% to INR 352.2 Cr in FY24 from INR 365.7 Cr in the previous year
Chaayos posted a positive EBITDA of INR 28.3 Cr in FY24 as against an EBITDA loss of INR 22.1 Cr in FY23
Delhi NCR-based tea-cafe chain Chaayos
reduced its net loss by 50.59% to INR 54 Cr in the financial year ended March 2024 (FY24) from INR 109.3 Cr in FY23, as it cut its expenses and turned EBITDA profitable.
However, the decline in loss came at the cost of subdued growth in its top line. Chaayos’ operating revenue rose a mere 4.89% to INR 248.6 Cr during the year under review from INR 237 Cr in FY23.
Including other income, total revenue grew 7% to INR 271.2 Cr in FY24 from INR 253.4 Cr in the previous fiscal year.
Chaayos also posted a positive EBITDA of INR 28.3 Cr in FY24 as against an EBITDA loss of INR 22.1 Cr in FY23. EBITDA margin improved to 11% during the year from -9% in FY23.
Founded in 2012 by Raghav Verma and Nitin Saluja, Chaayos is a cafe that offers beverages and quick bites through various outlets in the country. It also sells various premix teas via its website and other marketplaces.
Where Did Chaayos Spend?
Chaayos managed to reduce its total expenditure by 3.69% to INR 352.2 Cr in FY24 from INR 365.7 Cr in the previous fiscal year.
Employee Benefit Expenses: At INR 81.5 Cr, employee expenses accounted for about 23% of Chaayos’ total expenses in FY24. The spending under the head grew 4.89% from INR 77.7 Cr in FY23.
Advertising & Promotional Expenses: In a bid to cut its loss, the startup slashed its advertising and promotional expenses by 50.81% to INR 13.3 Cr in FY24 from INR 27.1 Cr in FY23.
Cost Of Material Consumed: Chaayos spent INR 73.7 Cr under this head, down 12.4% from INR 84.1 Cr spent in FY23.
Commission Paid to Selling Agents: The spending under the head saw a decline of 5.13% to INR 25.9 Cr from INR 27.3 Cr in FY23.
Chaayos has raised about $85 Mn across multiple rounds till date and counts marquee names like Tiger Global, Alpha Wave, and Elevation Capital among its backers. It last raised $53 Mn in its Series C round.
Chaayos directly competes against the likes of Chai Point, Chai Sutta Bar, and MBA Chaiwala. Indirectly, it competes against coffee chains such as The Third Wave Coffee, Blue Tokai, and Starbucks.