Chaayos, India’s leading tea-cafe chain, has reported a landmark financial performance for the fiscal year ending March 31, 2025 (FY25). Breaking a period of flat growth, the Tiger Global-backed startup saw its operational revenue surge by 25% to cross the ₹300 crore mark, a significant jump from the ₹248.5 crore recorded in FY24.
The highlight of the fiscal year was the company’s aggressive push toward sustainable profitability. Chaayos reported that its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) surged by a staggering 6.5 times compared to the previous year. This massive spike is attributed to the brand’s successful “premiumization” strategy and tight operational control.
By transitioning from paper to ceramic cups in select stores and optimizing its “Chai Monks” IoT-enabled tea bots, the company managed to enhance the guest experience while slashing waste and overheads.
Chaayos has successfully navigated the “burn-to-earn” transition that many Indian startups currently face. Key financial highlights include:
- Revenue Growth: Reached ₹330 crore (including other income).
- Net Loss: Slashed by over 53%, continuing the downward trend from FY24.
- Store Efficiency: Despite a moderate increase in the number of outlets to over 200, the revenue-per-store improved significantly.
While tea remains the core product—accounting for over 95% of revenue—FY25 saw Chaayos piloting a new coffee and cold beverage menu to compete with rising coffee giants like Starbucks and Blue Tokai.
With a healthy cash balance of approximately ₹90 crore and the backing of marquee investors like Elevation Capital and Alpha Wave, Chaayos is now looking to double its footprint. The company has set an ambitious target to reach 400 stores by 2027, focusing on deep penetration in Delhi-NCR, Mumbai, and Bengaluru while exploring new markets like Hyderabad and Kolkata.
Key Highlights:
- Revenue Milestone: Crossed ₹300 crore in operating revenue, marking a 25% year-on-year growth.
- Profitability Surge: EBITDA grew 6.5 times, driven by premiumization and strict cost management.
- Loss Control: Net losses were reduced by 53%, signaling a clear path toward total net profitability.
- Future Outlook: Expansion plans to reach 400 outlets and a diversified menu including premium coffee.