Chai Kings Gets $3 million Funding From A.V.Thomas

Chai Kings, a well-known Chai retail chain in Tamil Nadu, has raised $3 million (Rs. 24 crore) in its Series A funding round from A.V.  Thomas and Co. (AVT), one of largest packaged tea players. The fund will be utilized to bolster technology-driven customer engagement and operational efficiencies.

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Chai Kings said in a release that it would close FY 2025 with a revenue of Rs. 48 crore. “The company has plans to double its revenue over the next two years while maintaining profitability,” the release added.

“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,” said Jahabar Sadique, Co-Founder and CEO of Chai Kings, in a release. “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,” 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.”

As part of this round, The Chennai Angels (TCA), Chai Kings’ early backers,  is making a partial exit with substantial returns. “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,” said Sadique. In a telephone conversation with this correspondent, he said Chennai Angels had been with Chai Kings for some years now. To a query on the stores, he said all the stores were company-owned ones. Chai Kings, according to him, has little over 300 employees on its roll.

AVT, a household name in the tea industry, with brands such as AVT Premium and AVT Gold Cup, expressed enthusiasm about the partnership. “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, in the release.

Established in 2016, Chai Kings currently operates 57 stores across Chennai, Hyderabad and Coimbatore.

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