Chai Kings raises ₹24 cr. in Series A funding from A.V. Thomas & Co.

Chai Kings secures $3 million funding from AVT to expand, innovate, and double revenue, with strong financial performance.

Chai Kings, a popular tea retail chain, has raised ₹24 crore ($3 million) in a Series A funding round from A.V. Thomas and Co. Ltd.(AVT), one of India’s largest packaged tea players. With this infusion of capital, Chai Kings aims to accelerate its expansion plans, enhance its product offerings, and further strengthen its supply chain. The investment will also be utilised for technology-driven customer engagement and operational efficiencies.

Chai Kings said that it will close FY25 with a revenue of ₹48 crore with a positive EBITDA, demonstrating strong financial performance. The company said it has plans to double its revenue over the next two years while maintaining profitability, reinforcing its commitment to sustainable and scalable growth.

“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,” said Jahabar Sadique, co-founder and CEO of Chai Kings.

“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,” said Balaji Sadagopan, COO of Chai Kings.

“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.

As part of this round, The Chennai Angels (TCA), Chai Kings’ early backers, are 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,” added Mr. Sadique. Started in 2016, Chai Kings currently operates 57 stores across Chennai, Hyderabad and Coimbatore.