Blue Tokai plans 800 stores by FY30 to rival Starbucks
What's the story
Blue Tokai Coffee Roasters, a leading specialty coffee brand and a major competitor of Starbucks in India, has announced an ambitious expansion plan. The company intends to increase its store count from the current 240 to 800 by fiscal year 2030. This aggressive growth strategy comes as part of Blue Tokai's efforts to capitalize on India's growing coffee culture and consumer demand for premium coffee experiences.
Growth strategy
New store openings and international expansion
Co-founder Matt Chitharanjan revealed that the company plans to open around 120 new stores this fiscal year. The expansion will focus on major metropolitan areas as well as newer markets such as Ahmedabad and Lucknow. Notably, Blue Tokai also plans to open its first international store in Dubai next week, marking a significant step in its global expansion strategy.
Financial outlook
Revenue growth and profitability expectations
Despite facing competition from established players like Starbucks, Cafe Coffee Day, Barista, and Third Wave Coffee, Blue Tokai sees plenty of growth potential. The company expects its revenue to grow more than 50% this fiscal year to ₹800 crore, up from a near sevenfold increase over the past four years. Chitharanjan also said he expects the company to become profitable by March 2028.
Investment strategy
IPO plans in the pipeline
Backed by investors such as Verlinvest, Blue Tokai is eyeing an initial public offering (IPO) within the next five to seven years. This move will provide an exit route for early investors. The company is also in early talks with private equity firms, including TPG, Temasek, and ChrysCapital, to raise a minimum of $100 million.