Chai pe Charcha: 15 Indian Tea Startups, a Fresh Twist to Chai

Tea, or Chai as we Indians call it, is such a crucial part of our culture that it has been served at least once in every home in India, no matter which state or region you visit. We are one of the largest consumers of tea in the world, as evidenced by the fact that in 2022, India consumed over 1.16 billion kilograms of tea, about 30% of the world’s tea production.

However, tea consumption is not the only area in which Indians excel. Some of the world’s highest-quality teas are produced in India, and we are a powerhouse of tea production worldwide. India is the second largest tea producer in the world after China.

With the importance of tea so abundantly clear, many founders have sought to revamp and destroy the Indian tea industry. As such, many businesses have been created that revolve around tea, either selling prepared tea as a beverage with its unique additions and features or selling the highest-quality artisanal teas directly to consumers for preparation on their own. The tea industry is buzzing loudly.

The Indian tea industry has already crossed a market capitalization of 10,000 Crores (INR) and is expected to grow to around 25,000 Crores (INR) in the coming decade.

Indian Startups Changing the Tea Landscape in India

Owing to its popular household status, Chai, or tea, has attracted much innovation and commercialization. Some entrepreneurs have taken it to the next level and created flourishing businesses out of this household beverage, raking in crores in revenue and gaining massive popularity. 15 of these disruptive tea startups in India are:

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·  Chaayos

Chaayos is a chain of cafes centred around the quintessential tea and snacks experience. Their diverse menu features innovative and eye-catching options such as ‘Aam Papad Chai’. However, besides these experimental menu options, Chaayos has an extremely solid core menu comprising Kulhad Chai, Adrak Chai, etc.

They offer more than 12000 different tea combinations, owing to their option to let the consumer customize the kind of tea they want. Their food menu has many Indian and Western snacks to accompany their beverages, and they also deliver their food products via food delivery apps such as Swiggy and Zomato.

Chaayos was founded 2012 by Nitin Saluja and Raghav Verma, two Indian entrepreneurs who wanted to create a unique tea experience for the modern consumer. They have expanded significantly in the previous decade, and as of 2023, Chaayos operates over 200 outlets across major Indian cities, including Delhi NCR, Mumbai, Bengaluru, Pune, and Chandigarh.

Chaayos is very tech-intensive and uses a lot of innovative solutions to ensure the quality of its products across its hundreds of outlets. The brand introduced IoT-enabled chai bots called “Chai Monks,” which automate the process of brewing tea, ensuring consistency and quality across all outlets. This blend of tradition and technology distinguishes Chaayos in the competitive tea café market.

The company reported an annual revenue of approximately ₹200 crore (around USD 25 million), showcasing its strong market presence and appeal among tea lovers. The company was also very resilient during the COVID-19 Pandemic and started delivering bottled tea in the metro cities, which was an instant hit.

Join the tea revolution like Chaayos, ensure your business is compliant, and get your GST registration sorted today to sip on success as you grow your tea venture.

·  Chai Sutta Bar

Chai Sutta Bar is another chronicle of Indian habits and the culture around drinking Chai. It is also a cafe-style chain centred around their tea options. The main attraction or differentiator for Chai Sutta Bar is the casual tea experience from stalls that they’re trying to replicate in a more cafe-style business outlet.

The brand has a “no smoking” policy, despite the name “Chai Sutta Bar,” because they want to emphasize the casual nature and conversations that happen at a roadside tea stall, where people often have a smoke with tea but are also committed to promoting a healthier social environment.

The affordability of its products, with prices starting as low as ₹10, makes CSB accessible to students, young professionals, and families alike, which also promotes its focus on making people from different walks of life come together and share a small and casual experience. Their menu includes small snacks such as samosas, sandwiches, fritters (pakoras), etc.

As of 2023, CSB operates over 450 outlets in over 190 cities, including major urban centres like Mumbai, Delhi, Bangalore, Pune, and Kolkata. The brand’s rapid growth has been fueled by its franchising model, which enables it to establish a strong presence in metro and smaller cities and cater to a diverse customer base.

Chai Sutta Bar’s growth trajectory has been remarkable, with the brand crossing an annual turnover of ₹150 crore (around USD 18 million) by 2023. With its unique offerings and social engagement models, Chai Sutta Bar is sure to grow and expand its tea business in India.

Chai Sutta Bar embodies a healthy environment to promote a smoke-free environment and foster community connection. Invest in a healthier, inclusive future while enjoying chai that supports sustainable practices with ESG strategies.

·  Chai Point

Chai Point is an offering made to appeal to modern urban Indian consumers. It has revolutionized tea-drinking culture and made it into a clean and hygienic cultural reflection of the tastes and flavours of India, which you can even enjoy in corporate spaces.

Chai Point was founded in 2010 by Amuleek Singh Bijral, an alumnus of Harvard Business School. He found a lack of modern and organized players in the tea market and founded Chai Point to fill that gap.

Chai Point’s ‘Mitra’ tea vending machines are one of its most unique selling points. These intelligent and IoT-enabled machines are installed in office and corporate spaces and dispense fresh hot tea on demand.

In 2022, Chai Point launched its “Chai Point BoxC,” a heat-retaining delivery solution that keeps chai warm for over an hour, improving the experience for customers who order tea in bulk for offices or events. The BoxC has been a key driver of its corporate catering service, a rapidly growing part of its business.

The innovations described above show technological innovation’s role in Chai Point’s success. Their menu is packed with traditional classics such as Adrak Chai. It extends to healthier options such as lemon tea and green tea, showing how well Chai Point is focusing on its consumers, who are health-conscious modern and urban Indians.

 As of 2022, Chai Point’s revenue has exceeded ₹190 crore (around USD 23 million), marking a significant achievement in its decade-long journey. Chai Point operates over 190 stores in major cities such as Bengaluru, Mumbai, Delhi NCR, Hyderabad, Chennai, and Pune.

·  MBA Chaiwala

One of the biggest names in the modern tea business is MBA Chaiwala. This business was started by Praful Billore, who wanted to pursue an MBA degree, but his academic pursuits didn’t quite line up, leading him to open a tea stall.

However, that tea stall has now turned into more than 100 tea cafes, bringing in an annual revenue of more than 5 Crore Rupees. This might not be as large as other prominent players on this list, but a tea stall turning into a franchise chain is huge in a decentralised industry. The brand has its outlets and franchisees, allowing it to expand rapidly, with more than 100 stores now in various cities such as Delhi, Mumbai, Kolkata, Bangalore, Jaipur, and Pune. They had started their operations in Ahmedabad.

Besides its attractive menu options, such as a myriad of traditional and experimental tea options and classic snacks, such as Maggi and Bun Maska, MBA Chaiwala has its core offering covered. Apart from this, the brand has a strong social presence across various platforms, with its founder, Praful Billore, almost an influencer/social personality.

The brand also engages frequently in community helping and social service activities such as blood donation camps, youth empowerment sessions, etc. The founder has also been featured in a TED talk, talking about their journey of academic failure leading up to creating a successful business.

MBA Chaiwala is a great source of inspiration for budding entrepreneurs. It proves that even a roadside tea stall can be a full-fledged business!

· Tpot Cafe

Tpot Cafe is a contemporary twist on tea, vowing to create a comfortable and clean aesthetic associated with tea. It is a tea-cafe chain that operates over 35 outlets in the NCR. The brand has found success by focusing on high-footfall areas such as business parks, shopping centres, and educational institutions catering to office-goers, students, and tea enthusiasts alike.

One of the brand’s unique selling points is its focus on chai as an experience. The café’s cosy ambience, complete with comfortable seating and relaxing decor, invites customers to unwind, have conversations, and enjoy tea at their own pace.

This emphasis on creating a laid-back experience associated with tea has worked in their favour, as people from these high-footfall areas come to their outlet to take a break and engage in casual conversations. Tpot Café has also been recognized for its health-conscious offerings, introducing sugar-free and vegan chai options catering to an increasingly health-aware customer base.

 The company has adopted a hub-and-spoke model, with several large cafes acting as hubs and smaller kiosks operating in strategic locations such as metro stations, corporate offices, and malls. This model has allowed Tpot to scale efficiently while maintaining brand consistency across all outlets.

This model works for them, as in 2022, Tpot Cafe reported annual revenues exceeding 25 Crore Rupees. They are also actively funded and looking to expand into new cities and international markets.

The brand uses biodegradable packaging for its takeaway orders and encourages customers to adopt eco-friendly practices by offering discounts for those who bring their cups.

Ready to sip success like Tpot café get help to navigate company registration services so you can begin your own business and make an eco-friendly impact.

· Teabox

Teabox is a D2C (direct-to-consumer) tea brand that aims to bring the freshest and most natural teas directly to Indian and International consumers, cutting out the middlemen in the process and providing fresher teas at more affordable rates. They started with the idea of revolutionizing the tea supply chain. Teabox was founded in 2012 by Kaushal Dugar and is headquartered in Siliguri, West Bengal, which is located in the foothills of the Himalayas, close to the famed tea-growing regions of Darjeeling, Assam, and Nilgiri.

Because of its proximity to the tea farming regions of India, Teabox can procure the freshest and most high-quality tea right from its source and ship it all over India directly to consumers. While Teabox operates largely as an e-commerce company, it has a retail presence with flagship stores in key cities, including Bengaluru and Mumbai. Teabox is also available in high-end luxury hotels and premium retail outlets.

The selling point of Teabox is its fast supply and freshness. The teas are shipped to the consumers within 24 to 48 hours of being picked, ensuring freshness. They are quite famous for their single-origin teas, sourced from over 150 tea estates in India and Nepal. The brand also focuses heavily on personalization, offering a tea subscription service where customers can receive curated tea selections based on their preferences.

Teabox has rapidly grown into a global brand, shipping its teas to over 120 countries, including the United States, Canada, the United Kingdom, and countries in Europe and Southeast Asia. As of 2023, their revenue exceeds 50 Crore Rupees, making them a premium player in the tea industry.

· Karma Kettle

Karma Kettle is an artisanal and fine tea brand that focuses on the wellness aspects of tea. Founded in 2015 by Priti and Dipak Dugar, Karma Kettle is the culmination of their tea experiences worldwide as travellers and connoisseurs. Based in Kolkata, the heart of India’s tea-growing regions, Karma Kettle offers premium, artisanal teas with a special emphasis on wellness and innovation.

Karma Kettle offers an impressive range of artisanal teas, including black, green, oolong, and herbal blends. However, what truly sets the brand apart is its collection of exotic tea blends that incorporate unique ingredients like spices, flowers, and herbs worldwide. They also have a tea of the month and many iced tea and other experimental options, all at affordable prices, making them stand out as a brand.

Karma Kettle also offers a tea subscription service. This service allows customers to receive a curated selection of teas each month, making exploring new flavours and blends easy. The subscription box is customized based on preferences, ensuring customers receive teas that match their tastes and wellness needs.

The most significant contribution of Karma Kettle has been the impact on the popularity of tea as a wellness option. They are one of the first players in the market that promoted artisanal and wellness teas, curating different blends such as  “Darjeeling First Flush,” a classic and highly sought-after tea, and more innovative offerings like “Shanti,” a calming blend of lemongrass and peppermint, and “Turmeric Detox,” which incorporates anti-inflammatory turmeric with ginger and cinnamon.

· The Chai Story

The Chai Story, founded in 2016 by Sagar Desai, Yash Agarwal, and Utkarsh Lakhmani, set out to modernize India’s tea-drinking experience. Starting in Delhi, the café chain has rapidly expanded to over 50 outlets across major cities, targeting high-traffic areas like malls and universities.

The brand offers a diverse menu, blending traditional chai varieties with contemporary options like bubble teas and iced teas. Affordable snacks, ranging from Maggi to street food-inspired items, complement their beverages.

The Chai Story’s success lies in creating a youth-centric social environment that marries chai culture with café aesthetics.  In 2021, the company launched a range of bubble teas, tapping into the global bubble tea trend and bringing it to the Indian market. This move was well-received, especially by younger customers looking for a new and trendy tea experience.

While exact figures aren’t public, the company’s growth has been impressive, driven by a franchise model and adaptation to local tastes. Recent initiatives include launching bubble teas, adopting eco-friendly packaging, and partnering with food delivery platforms.

The Chai Story has significantly impacted India’s café market by elevating chai from a street beverage to a trendy café offering, appealing to a broad demographic, including students and office workers. The company plans to expand further into Tier 2 and 3 cities, explore online retail for packaged products, and potentially enter international markets.

With its innovative approach and strong brand identity, The Chai Story has positioned itself as a key player in India’s evolving café culture. It successfully bridges the gap between traditional tea stalls and modern coffee shops while maintaining affordability and accessibility.

· Chai Kings

Chai Kings is another urban take on Chai, focused in southern India. Chai Kings was founded in 2016 by Balaji Annamalai and Jagan Rajagopal in Tamil Nadu. With Chennai as its base of operations, the business has expanded to over 60 cities in the southern region of India, including names such as Coimbatore, Hyderabad, Bengaluru, and Cochin. The brand has adopted a mix of kiosk-style stores, dine-in outlets, and delivery-only formats to cater to different customer needs and locations.

A huge selling point of Chai Kings is its focus on hygiene and quality. The brand’s teas are made using filtered water and served in eco-friendly, biodegradable cups with varying sizes. The brand also offers takeaway chai in thermos-like flasks, allowing customers to enjoy their tea hot for hours. They also have an app offering subscriptions and special offers, keeping their customers hooked. They also have loyalty programs and offer loyalty points that can be redeemed for offers and discounts.

By 2023, the brand was estimated to have a revenue of over ₹35 Crore Rupees.  Chai Kings follows a franchising system that allows rapid expansion while providing opportunities for budding entrepreneurs to open their Chai Kings outlets.

The brand has a well-developed delivery system, offering online ordering through its app and partnerships with major delivery platforms like Swiggy and Zomato. Its menu includes classic chai options like Masala Chai, Ginger Chai, Cutting Chai, and Suleimani Chai, as well as more contemporary variations like Iced Teas, Lemon Chai, and Elaichi Chai.

· Kolkata Chai Company

The Kolkata Chai Company is a great homage to Indian flavours but brings them to the international market. The Kolkata Chai Company is based in New York City, operating its flagship café in Manhattan’s East Village. They are committed to providing a luxurious tea-drinking experience to whoever seeks authentic Indian flavours. Their menu includes authentic Indian masala chai made with their secret family recipe.

Kolkata Chai Company was founded in 2019 by Ayan and Ani Sanyal, two brothers of Bengali origin who were born and raised in the United States. They aimed to create a café that celebrated traditional Indian chai while introducing it to a new, global audience in a modern setting.

The founders aim to expand their physical presence with more outlets, particularly in cities with large South Asian populations, such as San Francisco, Chicago, and Toronto. Their outlet in Manhattan has become a community centre for people of South Asian descent who want to meet and celebrate the cultural tradition of tea.

They have also been featured in several lifestyle publications, such as the New York Times, and gained popularity in the international markets. In 2022, Kolkata Chai Company hosted pop-up events across major U.S. cities, further expanding its reach and brand awareness.

The cafe also hosts many events that showcase South Asian art, culture, and heritage and plans to expand on this front. The brand’s dedication to quality, culture, and community has set it apart in a crowded beverage market, and its ability to bridge tradition with innovation has resonated with customers in the U.S. and beyond.

· Udyan Tea

Udyan Teas is a direct-to-consumer farm-fresh loose-leaf tea brand based in Siliguri, a region in India’s tea-growing areas, close to Darjeeling, one of the largest tea hubs. It was founded in 2012 by Ankit Baid, Bishal Agarwal, and Anshuman Kanoria, who are passionate about sharing India’s rich tea culture with the world by providing fresh, high-quality, loose-leaf teas directly from gardens to consumers.

Udyan Tea ensures that farmers are fairly compensated for their produce and that only the freshest and highest-quality tea reaches consumers. It offers a wide variety of loose-leaf teas sourced directly from tea estates in India. Their range includes black, green, white, oolong, and blended/flavoured teas. Some of its most popular offerings are Darjeeling First Flush, Assam Orthodox, Masala Chai, Himalayan White, and Mint Green Tea.

The demand for speciality and artisanal teas has increased steadily, and Udyan Teas has achieved remarkable success in catering to this demand.  In 2021, Udyan Tea was recognized as one of India’s Top 10 Tea Brands, underscoring its influence in the industry. Udyan Tea has also expanded its corporate gifting services, partnering with various companies to offer custom tea gift boxes for festivals, special occasions, and client engagements. This has further expanded their reach in the corporate market.

Udyan Tea has also started diversifying its product lines into herbal and wellness teas, which has led it into newer markets and customers. It has also started offering teaware, including kettles and brewing kits, in its e-commerce store.

Brew your business dreams like Udyan Tea’s with a quality focus, and secure your FSSAI license today to ensure your tea offerings meet the highest safety standards.

· Chai Thela

Chai Thela is a kiosk-style outlet chain focusing on Indian tea-based beverages. It is primarily located in Noida but also has outlets in other regions of the NCR. Kaushal Sampat founded Chai Thela in 2014 in Noida, India. Chai Thela has diversified its menu to include Western options such as sandwiches, salads, and ice-coolers, giving customers various options to enjoy while being a part of a casual and modern environment.

One of the primary reasons behind Chai Thela’s success is its focus on maintaining a high standard of hygiene, which is often lacking in traditional roadside chai stalls. Kaushal Sampat envisioned a place where customers could enjoy chai without worrying about cleanliness, and Chai Thela has delivered on that promise.

Chai Thela plans to expand into more regional markets by introducing snacks and beverages from those regions, and its franchising models have allowed it to expand rapidly. At the same time, kiosks are a great way to get your name out without investing a lot of money.

· The Hillcart Tales

The Hillcart Tales traces its roots back to 1897 when Swaraj Kumar Banerjee started his journey as a tea trader in the bustling tea city of Siliguri, West Bengal. The Hillcart Tales’ USP lies in its ability to blend traditional tea-making techniques with modern flavours and innovation. Each of their tea offerings is presented with a unique story, giving customers a beverage and an experience that evokes India’s rich tea heritage.

With centuries of tea-selling and sourcing experience, The Hillcart Tales has doubled its focus on quality and ethical sourcing. They are one of India’s biggest artisanal tea brands, and their bespoke packaging adequately reflects that high quality and commitment. The brand is transparent about its sourcing practices and actively supports the preservation of biodiversity in the tea-growing regions of India.

As a luxury tea brand, The Hillcart Tales has made a name for itself in both Indian and International markets. In recent years, the brand has focused on reaching younger consumers by introducing innovative tea blends and cold brew teas, which appeal to a health-conscious and modern audience.

With over a hundred years in the industry, their branding, packaging, and marketing seem modern and cutting edge, showing how much attention is paid to the brand’s language and feel.

· Wagh Bakri Tea Lounge

Everyone in India who has ever shopped for tea has heard the name Waagh Bakri Tea, as it is one of India’s most popular and premier tea companies.  The group was founded in 1892 by Narandas Desai, a tea planter who started his journey in South Africa before returning to India to establish his tea business.

Coming to Wagh Bakri Tea Lounge is a cafe-styled tea lounge opened by the Wagh Bakri Tea Group. The Wagh Bakri Tea Lounge is headquartered in Ahmedabad, Gujarat. The first lounge opened in Ahmedabad, and over time, the brand has expanded its tea lounges to major cities like Mumbai, Pune, Delhi, Jaipur, Surat, and Goa. There are currently 15+ outlets across India.

Wagh Bakri Tea Lounge offers a premium tea-drinking experience with a wide selection of freshly brewed teas, including black tea, green tea, masala chai, oolong tea, and herbal infusions. What works in their favour is the strong brand presence of the Wagh Bakri tea products, which give their tea lounges a premium and modern feel.

While exact revenue figures for the Wagh Bakri Tea Lounge are not publicly available, the brand benefits from being a part of the larger Wagh Bakri Group, which reportedly has an annual turnover of over ₹1,500 crore. Wagh Bakri Tea Group continues to expand its operations across India and convert more of its commercial tea success into newer business ventures such as tea cafes, kiosks, etc.

· Tea Trunk

Tea Trunk is a purebred brand for tea sommeliers and connoisseurs. They are highly focused on the quality and sourcing of tea, reflected in their artisanal blends and luxury tea options. Tea Trunk was founded in 2013 by Snigdha Manchanda, a certified tea sommelier passionate about curating artisanal teas across India. After studying the art of tea blending at the Tea Sommelier Academy in Sri Lanka, Manchanda was inspired to bring India’s rich tea heritage to a global audience while emphasizing wellness and sustainability. This resulted in the creation of Tea Trunk.

Tea Trunk is an online and offline brand based in Goa, India. While the company started with an online-only model, offering its premium teas through its e-commerce platform, it has since grown in popularity. It now retails its products in speciality tea stores, cafes, and boutiques across India. Tea Trunk also exports its teas to international markets, including the United States, Europe, and Asia.

One of Tea Trunk’s USPs is its focus on functional teas that promote wellness. Many of their blends are designed to offer specific health benefits, such as detox teas, immunity-boosting teas, digestion-friendly teas, etc. The company promotes ethical consumption, encouraging customers to choose loose-leaf teas over tea bags, which often contain microplastics. Thus, Trunk has established itself as a brand focusing on wellness while ensuring that only the highest-quality blends make it into the consumers’ cups.

If you wish to export tea or sell flavoured tea in India, you need to register with the Tea Board of India (TBI) and get the tea board license.

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Conclusion

With the projected size of the tea industry in the upcoming years, many tea businesses are sure to pop up, but whether they achieve commercial success depends upon whether they differentiate themselves well enough.

As you can see from the above list of tea startups, successful brands are the ones that have made unique offerings and created their own brand language. Innovation and technology are also important for success. Businesses can significantly lower costs by optimizing processes with technology and simultaneously improving the hygiene and quality of products.

Sip into the vibrant world of Indian tea with these innovative startups with Startup India Registration. Visit our Corpbiz website to discover your new favourite brew and join today’s chai revolution.

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