Specialty coffee chain Blue Tokai is planning a major expansion, aiming to more than triple its store network to 800 outlets by FY30 as competition intensifies in India’s rapidly growing premium café market.
According to a Bloomberg report, the company currently operates around 240 cafes and plans to open nearly 120 new outlets during the current financial year. The expansion will focus on major metropolitan cities while extending its presence to emerging markets such as Ahmedabad and Lucknow.
“We’re still fairly under-penetrated in terms of branded cafés,” Blue Tokai co-founder and Chief Executive Officer Matt Chitharanjan told Bloomberg. “While it may seem from the outside that there’s a lot of competition, there’s still tons and tons of white space.”
Blue Tokai’s aggressive expansion comes as India’s organised café industry continues to benefit from rising disposable incomes, increasing urbanisation and growing demand for premium coffee experiences. According to research firm IMARC Group, the country’s café market, valued at approximately $425 million in 2025, is projected to grow to $1.15 billion by 2034, registering a compound annual growth rate (CAGR) of 11.14%.
Industry estimates from Mordor Intelligence also identify India as the fastest-growing specialty coffee market in the Asia-Pacific region, driven by changing consumer preferences and expanding café culture.
The expansion plans coincide with heightened competition from both international and domestic players. Starbucks, which operates in India through a joint venture with Tata Consumer Products, has announced plans to add up to 100 stores annually to its network of more than 500 outlets. Homegrown brands such as Third Wave Coffee, Cafe Coffee Day and Barista are also expanding their footprints.
Separately, Blue Tokai is reportedly in preliminary discussions with private equity firms, including TPG, Temasek and ChrysCapital, to raise at least $100 million through a combination of primary capital and secondary share sales. The fundraising discussions remain at an early stage.
The company expects revenue to increase by more than 50% to around Rs 8 billion in the current financial year after recording nearly seven-fold growth over the past four years. Backed by investors including Verlinvest, Blue Tokai is also evaluating an initial public offering (IPO) within the next five to seven years and plans to raise an additional Rs 1.5 billion before financing future expansion through internal accruals.
Blue Tokai is also set to open its first international outlet in Dubai, marking its entry into overseas markets. While the company faces challenges such as elevated coffee prices, supply chain disruptions and rising real estate and employee costs, it expects to achieve profitability by March 2028, supported by greater operating efficiencies from a denser store network.