Tea retail chain Chai Point has raised $10 million (Rs 66.35 crore) from round led by Fidelity’s proprietary investment arm, Eight Roads Ventures (formerly Fidelity Growth Partners India), with participation from Saama Capital, an existing investor, and DSG Con sumer Partners. Kabir Narang, managing director at Eight Roads Ventures said in a statement, “we have been actively looking at opportunities in the F&B services sector and are excited to partner with Chai Point and its impressive management team.”
Last year, the Bengaluru-based company, founded by Harvard graduate Amuleek Singh Bijral, received an estimated Rs 10 crore from investment firm Saama Capital which has also backed Snapdeal and vintner Sula Vineyards.
“We have been excited to see the growth in the business and believe that this new in vestment will enable us to maintain our leadership position and spur significant growth.The company is the largest by far, has ability to be the fastest to scale,” Ash Lilani, managing partner and cofounder, Saama Capital, told DB.
The company works on a hybrid model of service stores and delivery-only hubs across Delhi-NCR, Bengaluru, Pune and Mumbai and has placed big bets on its delivery component. About 40 per cent of its orders, including 1.5 lakh glasses of chai a day, are made through its nine-month-old mobile app.
The money raised will be used to expand its geographic reach from 7 cities as well as grow the delivery component of business -Chai on Call as well as Chai at Work.