Blue Tokai's FY24 Revenue Surges 69% To Cross INR 200 Cr Mark

SUMMARY

Blue Tokai recorded total revenue of INR 221.1 Cr in FY24, up 72% YoY, primarily driven by coffee sales of INR 201 Cr and bakery business contribution of INR 15 Cr

The specialty coffee chain's loss widened 46% to INR 62.9 Cr despite EBITDA margin improvement to -19.7%, as costs surged 66% to INR 285 Cr due to aggressive expansion

The startup raised $35 Mn in Series C funding at $180 Mn valuation in 2024, following a $30 Mn Series B round, bringing total fundraise to $78 Mn as it competes with Third Wave Coffee and other specialty coffee chains

Specialty coffee brand Blue Tokai Coffee Roasters’ operating revenue zoomed 69% to INR 215.8 Cr in the financial year 2023-24 (FY24) from INR 127.5 Cr in the previous fiscal year.

The startup earned INR 201 Cr from the sale of coffee and food items in the fiscal, while its bakery business contributed INR 15 Cr.

Total revenue, including other income, grew 72% to INR 221.1 Cr in FY24 from INR 128.7 Cr in FY23. Other income, including interest and mutual fund returns, amounted to INR 5.4 Cr.

However, the Delhi NCR-based coffee chain’s loss widened 46% to INR 62.9 Cr in FY24 from INR 43 Cr in FY23 due to rising operational costs and aggressive expansion.

Founded in 2012 by Matt Chitharanjan, Shivam Shahi and Namrata Asthana, Blue Tokai operates over 100 stores across India and recently expanded its presence in Japan through a joint venture.

Where Did Blue Tokai Spend?

The startup’s expenses jumped 66% to INR 285 Cr in FY24 from INR 172 Cr in FY23. Here’s a breakdown of the expenses:

Procurement Costs: This was the largest expense for the startup. At INR 88 Cr, it accounted for 41% of the revenue.

Employee Benefit Expenses: The startup’s expenses under the head zoomed 94% to INR 84 Cr from INR 43 Cr in FY23.

Rent Expenses: The spending under the head surged 90.4% to INR 33.02 Cr in FY24 from INR 17.34 Cr in FY23

Besides, advertisement costs increased 33% to INR 7.74 Cr in FY24 from INR 5.81 Cr in FY23

The coffee chain’s EBITDA margin improved to -19.7% in FY24 from -23.2% in the previous year.

In August last year, Blue Tokai raised $35 Mn in a Series C round led by Verlinvest at a valuation of approximately INR 1,500 Cr ($180 Mn). This followed its $30 Mn Series B round led by A91 Partners in January 2023.

Overall, it has raised about $78 Mn to date.

The startup competes in India’s growing specialty coffee market, alongside venture-backed players like Third Wave Coffee Roasters, which raised $35 Mn in September 2023. Other key competitors include SLAY Coffee, Rage Coffee, and Sleepy Owl Coffee.