Alpha Wave leads Indian chai chain’s $53m series C

Chaayos, a tech-enabled chai cafe chain based in India, has raised US$53 million in a series C round led by Alpha Wave Ventures, with participation from Elevation Capital, Think Investments, and Tiger Global.

Photo credit: Chaayos

Using the company’s patented “Chai Monk” IoT-enabled tea bots, Chaayos customers can personalize their chai with 80,000 combinations. The cafe’s machines will then brew their drinks within two minutes. The chain also offers an AI platform, with features such as facial recognition, for faster checkouts and curated product trials.

The company’s tech-first, omnichannel model has allowed it to scale relatively quickly, as the approach doesn’t require employee training and enables simpler online access for customers. Chaayos’ mobile application, which comes with a loyalty program, is used by 52% of its customers and accounts for 45% of the chain’s revenue.

Moving forward, the fresh funds will be used for store expansion, hiring, and technology enhancement. The F&B firm, which was founded in 2012 by Nitin Saluja and Raghav Verma, currently has 190 stores across six cities and is aiming to open up 100 more by the end of the year.

The global F&B ecommerce market is set to reach US$57.1 billion by the end of 2022 at a compound annual growth rate of 22.2%.

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