Tiger Global-backed tea chain Chaayos will automate the tea making process, across all its 53 outlets by March 2018, by introducing a tea machine called Chai Monk. The first-of-its-kind IoT-enabled tea machine will cover the entire company’s system.
Chaayos founder Raghav Verma in an interview to Money Control said, “Chai Monk, is live at five of its cafes. In next three-four months will go live in all cafes.”
The company, with a repeat customer rate of 42 per cent month on month, claims to have registered noticeable growth in last year.
“In last four months we have got amazing growth that has allowed us to open one cafe a month,” he added. The company recently have opened flagship stores in Mumbai Airport and Delhi Connaught place.
In 2018, the firm plans to work on improving customers experience and expanding the company.
Chaayos launched its first cafe in November 2012. In 2015, Chaayos had raised $5 million in its Series A round led by Tiger Global. Ola co-founders Bhavish Aggarwal and Ankit Bhati also participated in the round.
The firm currently operates in six cities (Delhi, Mumbai, Gurugram, Noida, Ghaziabad, and Chandigarh). It plans to have 70 outlets by March.
With popularity among the millennials, the chai cafe chain is giving a run for their money to coffee chains.
The company claims to break even in 2018. It points to grow at 300 per cent year-on-year (YoY). Chaayos posted revenue of Rs27.28 crore in 2016-17 and reduced its loss by 55% from the previous year. The company also runs a loyalty programme, 95 per cent of customers are enrolled in its LoyalTea programme.
It competes with Starbucks, Chai Points, Tea Trails and Café Coffee Day.
Verma also offered suggestions to young entrepreneurs. “Having strong business economics and fundamentals are most important. Pick up the product that has strong appeal across the country. Just be true to your product,” he said.