D2C To Focus More On Building Experience: Raghav Verma, Cofounder, Chaayos

SUMMARY

At the outset, the Chaayos cofounder faced several doubts regarding the price point

He, however, remained focussed on providing the best service to his consumers to become their most preferred brand

Chaayos is one of the many growing brands that has expanded its nature of providing services based on the consumer lifestyle shift

At the fifth edition of the D2C summit organised by Inc42, Chaayos

cofounder Raghav Verma dissected his experience in building the cafe outlet that has gained strong confidence of consumers by offering snacks and beverages.

When questioned about the priorities of developing and strengthening the product, customer experience and pricing of Chaayos, Verma said that his brand figured out ways to meet the interests of a chai lover (consumer).

He said there were questions and doubts raised on the INR 35 price point Chaayos started with. But, he remained focussed on providing the best service to his consumers to become their most preferred brand. Today, the starting price of tea sold by the brand is INR 110, and the customers are happy to pay, Verma said.

Founded in 2012 by Verma and Nitin Saluja, Chaayos is a cafe that offers beverages and quick bites through various outlets in the country.

Verma said that the company is also focussed on refurbishing its services frequently to satisfy the evolving needs of consumers today. The brand also caters to its consumers through Swiggy and Zomato.

Notably, Chaayos is one of the many growing brands that has expanded its nature of providing services based on the consumer lifestyle shift.

Another example of this kind of business is Bengaluru-based Boba Bhai, quick-service restaurant (QSR) brand specialising in bubble tea and other food items. The brand raised a seed funding of INR 12.5 Cr ($1.5 Mn) at a valuation of INR 50 Cr ($6 Mn), in April.

As per Inc42’s report from earlier this year, IMARC Group sees India’s flourishing tea market growing at a CAGR of 3.2% to $14.7 Bn by 2032 from $11.1 Bn in 2023.

Delhi NCR-based tea-cafe chain Chaayos reported its operating revenue rose 77% to INR 239 Cr in the financial year ended March 31, 2023, from INR 135 Cr in FY22.

Despite that, the startup’s net loss widened by 34% to INR 96 Cr in FY23, from INR 71 Cr, a year ago, hurt by higher cash burn.

The D2C Summit is presented by Broadway, co-presented by Simpl and Emiza, powered by Venture Catalysts++, Zippee, Pay10 and Mobavenue, along with associate partners NITRO and Rukam Capital.