Chai Kings, a Chennai-based chai retail chain has raised $3 million (₹24 crore) in its Series A funding round from A.V. Thomas and Co. (AVT), a packaged tea company.
As part of this round, The Chennai Angels (TCA), Chai Kings’ early backers, are making a partial exit with substantial returns.
The funds raised will be used to accelerate expansion, strengthen its supply chain, and outlet expansion, enhance customer engagement, and improve operational efficiencies. The company also plans to innovate its product offerings to cater to the evolving preferences of tea lovers across India. The funds will also be used for customer engagement and operational efficiencies.
“We are thrilled to welcome A.V. Thomas and Co. as our investor and partner in this journey. Their deep-rooted expertise in the tea industry aligns perfectly with our vision of serving premium chai experiences at an affordable cost across India. This funding will enable us to scale our operations, open new stores, innovate our offerings and bring our unique chai experience to an even larger audience across India,” said Jahabar Sadique, Co-Founder and CEO of Chai Kings.
“We are grateful to The Chennai Angels for their support in our early growth phase. Their belief in our vision has played a crucial role in shaping Chai Kings into the brand it is today,” he added.
Balaji Sadagopan, COO of Chai Kings, said, “At Chai Kings, our mission has always been to bring high-quality and affordable chai to every corner of the country. With AVT’s support, we are confident that we can expand at an even faster pace while maintaining the superior quality and service that our customers love.”
“Chai Kings has built a strong brand and loyal customer base. We see tremendous potential in their growth trajectory and are excited to be a part of their journey,” said Ajit Thomas, Executive Chairman of AVT.
Founded in 2016 by Jahabar Sadique and Balaji Sadagopan, Chai Kings offers a premium and hygienic chai experience, serving a diverse range of tea blends with a focus on quality, sustainability, and customer delight.
Chai Kings have an extensive menu featuring classic masala and ginger chai, exotic saffron chai, Kashmiri Kahwa, herbal teas, iced teas, bubble tea, hot chocolates, and milkshakes.
With over 200 products priced between ₹30 and ₹400, Chai Kings currently operates 57 stores across Chennai, Hyderabad and Coimbatore.
Chai Kings projects ₹48 crore in revenue for FY 2025 and aims to double its revenue in two years while maintaining positive EBITDA.
