Indian specialty coffee chain Blue Tokai is aiming for nearly threefold revenue growth by 2027, targeting ₹1,000 crore ($118.5 million) annually. The company plans significant expansion, with 350 outlets expected nationwide within three years, up from its current 130.
CEO and co-founder Matt Chitharanjan revealed that Blue Tokai will focus on scaling operations in cities such as Hyderabad and Chennai to capitalize on India’s $300 million specialty tea and coffee café market. The company is backed by Belgian investment firm Verlinvest and has raised $81 million since its inception in 2013.
Despite a surge in Indian consumer-facing businesses going public this year, Chitharanjan emphasized that Blue Tokai is prioritizing internal goals over immediate IPO plans. “Market conditions will fluctuate, and we are more concerned about reaching our internal benchmarks,” he stated, adding that the company’s patient investors are not pushing for a quick public listing.
Blue Tokai’s profitability strategy includes ensuring “healthy” profit margins, making it an attractive IPO candidate in the future.
The Indian café market is heating up, with global brands like Starbucks and Costa Coffee expanding aggressively. Starbucks, through its Tata joint venture, operates over 400 outlets, while Costa Coffee runs 179 outlets. Blue Tokai, however, remains unfazed by competition.
“We’re not at a stage where there’s intense competitive pressure,” Chitharanjan said. “It’s about growing the market rather than competing for share.”
Blue Tokai’s projected revenue run rate for 2024 is ₹370 crore, with the company focusing on rapid growth and market development to meet its ambitious goals by 2027.
With its strong growth trajectory, focus on profitability, and significant market potential, Blue Tokai is positioning itself as a formidable player in India’s thriving coffee culture.