Chai Point, a leading tea café chain in India, plans to go public by May 2026, co-founder Tarun Khanna announced. The company, which sells nearly a million cups of tea daily, has ambitious expansion plans, including opening 300 more stores and scaling its vending machine business.
Chai Point, one of India’s leading tea café chains, has announced plans to go public by May 2026. Co-founder Tarun Khanna revealed the company’s IPO target while discussing its rapid expansion across the country. Chai Point currently serves nearly one million cups of tea daily through its outlets, delivery services, and vending solutions.
Founded in 2010, Chai Point is known for offering high-quality, hygienic tea at affordable prices. The company originated from an idea that struck Khanna and his student, Amuleek Singh Bijral, while observing roadside tea vendors. Their mission was to provide an authentic tea experience while creating employment opportunities. Today, Chai Point has over 170 stores across India, with plans to add 300 more in the next two years.
Expanding Business and Revenue Model
Unlike many other café chains, Chai Point operates on a company-owned store model instead of a franchise system. The company has also invested heavily in its vending machine business, deploying over 5,000 smart tea-brewing bots in corporate offices, hospitals, and retail hubs. These machines, driven by AI and IoT technology, ensure consistency and efficiency in tea preparation.
The company’s recent performance during the Maha Kumbh Mela in Prayagraj, Uttar Pradesh, further highlighted its growing reach. Chai Point sold over 100,000 cups of tea daily at its temporary outlets during peak days of the event.
IPO Plans and Financial Health
Chai Point is currently EBITDA positive and expects to become Profit Before Tax (PBT) cash flow positive within the next four to five months. The company is planning a combination of primary and secondary capital funding in the upcoming fiscal year to fuel its expansion. While founders, employees, and early investors hold about 25% of the company, institutional investors own the remaining share.
Despite facing setbacks during the COVID-19 pandemic, Chai Point has successfully rebuilt its operations. The company transitioned its supply chain for vending machines from China to India and restructured its technology team.
Future Plans and Market Position
With its motto, “India Runs on Chai,” Chai Point aims to redefine how India experiences tea. The brand has positioned itself as a key player in India’s tea and beverage industry, competing with both traditional chai stalls and premium café chains.
In the next year, the company plans to scale its operations significantly, increasing its monthly store openings from 10 to 20 and its vending machine deployment from 500 to 750 per month. This expansion is expected to create hundreds of new jobs, as each store hires around six employees.
Khanna emphasized Chai Point’s technological advancements, stating that their AI-driven vending solutions allow for real-time monitoring, predictive maintenance, and recipe customization based on consumer preferences. The company is leveraging cloud services such as AWS and GCP to enhance operational efficiency.
While Chai Point has received offers to expand internationally, the company is taking a cautious approach to entering foreign markets. For now, its primary focus remains on strengthening its presence in India and preparing for
