NEW AGE CHAI

Market
Urban chai market is 10 times the size of Coffee
Approximately $6b

+
Growing 30% faster than Coffee
+
Culturally engrained daily need

Each urban Indian consumes over 2 cups of chai everyday

+
100% unorganized
=

$6b unorganized growing market

Sources :

http://www.cgdev.org/doc/2013_MiddleClassIndia_TechnicalNote_CGDNote.pdf
http://mospi.nic.in/mospi_new/upload/Report_no558_rou68_30june14.pdf

Value Proposition
Quality

Custom
Made

Affordable

Experience

Consistent,
hygienic and
tasteful chais

Custom made
fresh chais

Chais more
affordable than
coffee cafs

Cozy ambience
and great
service

Roadside carts
compromise on
hygiene and
consistency

Roadside carts &

coffee cafs do not
do custom products
for consumers

Ambience at coffee
cafes is more tuned
to coffee than to tea

Coffee cafs
compromise on
taste

Freshness can not

always be
guaranteed

Chai is a slow
moving product at
Coffee cafs thus
they charge a
premium on it

Product
Cafs

On-Demand

Stage : Growth
Role : Acquisition + Branding + Hubs

Stage : Beta
Role : Penetration + Higher Margins

Cafes
8 cafes in Delhi NCR. 2 in fit-outs. Launching Bombay in July,
Bangalore & Pune in September

Chaayos Galleria

Chaayos SDA

Growth
Number of Cafs
11

Profitable

10

Yet to breakeven

Cafs in NCR

1Cr

8
7

Per caf p.a.

6
5

22%

EBITDA @ caf level

3
2

70%

Q1'15

Q4'14

Q3'14

Q2'14

Q1'14

Q4'13

Q3'13

Q2'13

Q1'13

Q4'12

Q3'12

Repeat Customer

Growth
Sales & Average Per Check (APC)
Sales, Rs MM

APC, Rs

14

250

13

Revenues
APC

12
200

11
10
9

150

8
7
100

6
5
4

50

3
2
1

Q3'12

Q4'12

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Growth
Same Store Sales

For stores operational over 13 mo

7.0

9%

Q-o-Q growth

SSS, Rs MM

6.0

5.0

4.0

3.0

2.0

1.0

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Customer Speak

Chaiwallas
Nitin

Raghav

Saurabh

Product & BD
IIT Bombay 2007

Branding & Sales

IIT Delhi 2010

Operations
IIT Bombay 2007

Tarun

Vinod

Yosha

Operations
IIT Bombay 2011

Operations
McDonalds

Rajat

Abhinav

Technology
NIEC 2014

Projects
DIT 2014

HR
MA, HRDM

Investors

Series A

Flipkart, Ola Cabs, Quikr, Shop

Clues

Bhavish Aggarwal
Angel Investor

Founder, Ola Cabs

Buzz

TOI

May 2015

Mint

July 2014

Gurgaon Times
Jan 2015

Gurgaon Times
Jan 2015

APPENDIX

Edge
QSR / Casual
Dine
Low Capex
High Customer
Repeat
All Day
Product Stickiness
Dense Penetration
Multi Format
On-demand
Brand to Product

Alcohol
driven

Food
Delivery

Coffee Caf

Chaayos

Menu

Menu

Menu

End