New Delhi, Feb 26 – Chai Point, India’s leading tea café chain, is gearing up for an initial public offering (IPO) by mid-2026, co-founder Tarun Khanna confirmed. The company, which serves nearly a million cups of freshly brewed tea daily, is expanding aggressively and investing in AI-powered vending solutions to enhance the tea experience across India.
Chai Point’s Journey: From a Café in Mumbai to 170+ Stores
The idea for Chai Point was conceived in 2009 when Khanna, a Harvard professor, and his student Amuleek Singh Bijral observed a roadside tea seller serving customers in plastic cups. Inspired by a vision to offer high-quality, hygienic tea to the masses while providing employment opportunities, they launched the first Chai Point outlet in Bengaluru's Koramangala in 2010.Since then, the company has grown exponentially, now operating over 170 stores across major Indian cities, including Delhi, Mumbai, and Pune. It follows a company-owned store model, distinguishing itself from competitors relying on franchises. The brand’s motto, “India Runs on Chai,” resonates with the deep-rooted tea culture in the country.
Aggressive Expansion Plans: 300 New Stores, AI-Powered Tea Bots
Chai Point plans to open 300 new stores in the next two years, doubling its current growth rate to 20 stores per month. It also deploys over 500 AI-powered tea dispensing machines (bots) monthly, with an ambitious target to scale up to 750 bots per month within a year. These bots cater to offices, hospitals, and high-footfall retail spaces.Tech-Driven Brewing & Real-Time Monitoring
Beyond physical stores, Chai Point is revolutionizing the tea experience through technology. With over 5,000 smart brewing machines installed nationwide, the company leverages AI, IoT, and cloud-based platforms like AWS and GCP to ensure consistency and efficiency. These systems monitor tea preferences, ingredient levels, and operational metrics in real time, preventing downtime and enhancing user experience.Kumbh Mela & Market Domination
The company gained significant attention during the Kumbh Mela in Prayagraj, where it sold over 1 lakh cups of tea per day at its peak. Chai Point’s ability to cater to massive crowds reinforces its scalability and brand dominance in India’s tea market.Financial Strength & IPO Plans
Khanna confirmed that Chai Point is already EBITDA positive and expects to become PBT (Profit Before Tax) cash flow positive in the next 4-5 months. The company is considering a primary plus secondary capital round this fiscal year ahead of its IPO target in May 2026.Currently, founders, employees, and early investors hold about 25% of the company, with institutional investors owning the rest.
Overcoming Challenges & Future Prospects
Chai Point faced significant disruptions during the COVID-19 pandemic, with sales plummeting and employees departing for larger firms. However, the company rebounded by rebuilding its tech team, shifting its supply chain from China to India, and enhancing its digital infrastructure.With its robust expansion strategy, AI-powered vending solutions, and strong financial health, Chai Point is poised to redefine India’s tea culture while preparing for its much-anticipated stock market debut in 2026.