Blue Tokai Coffee Roasters has initiated talks with private equity investors such as TPG, ChrysCapital and Temasek to raise nearly $100 million, two sources close to the negotiations say. Once finished, the round could be the biggest fundraiser for the coffee chain to date.
"It is still early days, but feelers have been sent to the top private equity funds," one of the people cited above said. The proposed round is expected to include both primary and secondary share sales, according to the second source.
The company, which operates through its parent company "Muhavra Enterprises Pvt. Ltd," has approximately 240 outlets in India. The company plans to open 800 cafes by FY30, with approximately 120 stores opening this year. The expansion will target larger metro markets and also enter newer cities like Ahmedabad and Lucknow.
“India is still fairly under-penetrated in terms of branded cafés,” said co-founder and Chief Executive Officer Matt Chitharanjan. “While it may seem from the outside that there's a lot of competition, there's still tons and tons of white space.”
The fundraising talks follow the ongoing growth of the organized cafe and food service market in India. The Indian food services market was estimated at $80 billion in 2024 and is expected to grow at a 10-11% CAGR through 2030, mainly driven by the organized segment, says Redseer.
Research firm IMARC Group projects the nation's cafe market, valued at $425 million in 2025, to grow 11.14% annually to $1.15 billion by 2034.
Also Read: ICICI Prudential Board Approves Prudential’s Reclassification as Investor Ahead of Bharti Life Deal
Blue Tokai expects revenue to increase by over 50% to around Rs. 800 crore in this fiscal year, after nearly sevenfold growth over the last four years. The company's competitors include Starbucks, Cafe Coffee Day, Barista and Third Wave Coffee.
With its joint venture with Tata Consumer Products, Starbucks already has more than 500 stores in India and is looking to expand by up to 100 outlets per year.
In addition, Blue Tokai is set to open its first overseas cafe in Dubai. Chitharanjan expects the company to be profitable by March 2028 and is planning to go public in five to seven years from now. “The advantage of coffee is that it's a very habitual thing,” he said.