Chai Kings

Chai Kings is an Indian tea cafe chain founded in 2016 in Chennai that sells freshly brewed chai, coffee and quick-service snacks through company-operated outlets. Its beverage range covers milk chai (ginger, dum, masala, zafrani), black chai (ginger lemon, lemon, sulaimani), herbal infusions (tulasi, green, hibiscus), iced chai, filter and cold coffee, milkshakes, mojitos, milk-based drinks and bubble tea in milk-tea and fruit-boba formats. Food items include kutty samosas, puffs, sandwiches, toasts, Maggi and poha, French fries, nachos, and steamed, fried and pan-fried momos in vegetarian and non-vegetarian variants. Chai is also sold in 250ml, 500ml and 1,000ml takeaway flasks for office and group orders.

The chain describes a catalogue of over 200 products across eight categories priced between ₹30 and ₹400, with chai starting at ₹35 at most outlets and ₹25–₹30 at selected locations. Beyond retail stores, Chai Kings runs an event catering business covering weddings, corporate events, exhibitions and parties in Chennai, Hyderabad and Coimbatore, with more than 300 menu items and packages starting at ₹25 per person, including branded and custom-printed snack boxes. The company states it sources tea leaves responsibly and follows Food Safety and Standards Authority of India (FSSAI) food safety guidelines, uses a single centralised vendor for core inputs such as milk, tea powder and sugar, applies a six-stage water filtration system to standardise water across locations, and runs SAP Business One as its ERP for real-time inventory control.

The company operates entirely on a COCO (company-owned, company-operated) model and states it does not offer franchises. Its corporate office is in Anna Nagar, Chennai.

Founding story

Co-founders Jahabar Sadique and Balaji Sadagopan each spent about 12 years in the IT industry and, between 2012 and 2016, ran a variety of franchise businesses including salons and sub-sandwich outlets. They initially planned a coffee product, but research indicated Chennai residents typically drink only one filter coffee a day while tea is preferred through the rest of the day, so they pivoted to chai. They invested ₹1.4 crore to open the first Chai Kings outlet in Kilpauk, Chennai, in 2016, aiming for quality chai in an appealing ambience. Sadique serves as CEO and Sadagopan as COO.

Business model

Chai Kings runs a company-owned, company-operated (COCO) store network rather than franchising, generating revenue from walk-in and takeaway sales of chai, coffee and snacks at its outlets, from online delivery orders, from flask and office chai deliveries, and from event and corporate catering. Beverages contribute about 62% of business, and the company has been adding higher-margin food items priced ₹100–150 alongside its earlier ₹25 snacks, supported by larger 500–600 sq ft stores.

Per-cup and per-item retail sales across store formats, supplemented by delivery aggregator orders, recurring office flask deliveries and event catering packages starting at ₹25 per person. About 45% of revenue comes from online platforms such as Swiggy and Zomato, with the remainder offline; roughly 6% of revenue is B2B.

Traction

Reported revenue of ₹48 crore in the last financial year as of mid-2024, and an expected FY25 close at ₹48 crore with positive EBITDA. The chain served over 32,000 cups per day and reported 12% month-on-month sales growth as of July 2024, with 57 stores as of March 2025 and 60+ outlets cited on its own site. Tea accounts for 78% of sales, coffee 20% and other beverages 2%; beverages overall are about 62% of business.

Latest developments

In March 2025 Chai Kings announced a ₹24 crore ($3 million) Series A investment from A.V. Thomas and Co. to accelerate store expansion, broaden product offerings, strengthen its supply chain and fund technology-driven customer engagement and operational efficiency; early backer The Chennai Angels made a partial exit in the round. The company said it aims to double revenue over the following two years while remaining profitable.