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NEW AGE CHAI
Market Urban chai market is 10 times the size of Coffee Approximately $6b
+
Growing 30% faster than Coffee
+
Culturally engrained daily need Each urban Indian consumes over 2 cups of chai everyday
+
100% unorganized
=
$6b unorganized growing marketSources : http://www.cgdev.org/doc/2013_MiddleClassIndia_TechnicalNote_CGDNote.pdf
http://mospi.nic.in/mospi_new/upload/Report_no558_rou68_30june14.pdf
Value Proposition
Quality Custom Made Affordable
Chais more affordable than coffee cafs Chai is a slow moving product at Coffee cafs thus they charge a premium on it
Consistent, hygienic and tasteful chais Roadside carts compromise on hygiene and consistency Coffee cafs compromise on taste
Custom made fresh chais Roadside carts & coffee cafs do not do custom products for consumers Freshness can not always be guaranteed
Experience
Cozy ambience and great service Ambience at coffee cafes is more tuned to coffee than to tea
Product Cafs Stage : Growth Role : Acquisition + Branding + Hubs
On-Demand Stage : Beta Role : Penetration + Higher Margins
+
Cafes
Chaayos SDA
Chaayos Galleria
8 cafes in Delhi NCR. 2 in fit-outs. Launching Bombay in July, Bangalore & Pune in September
Growth
7Cafs in NCR
1CrPer caf p.a.
22%EBITDA @ caf level
70%Repeat Customer
Number of Cafs
0
1
2
3
4
5
6
7
8
9
10
11
Q3'
12
Q4'
12
Q1'
13
Q2'
13
Q3'
13
Q4'
13
Q1'
14
Q2'
14
Q3'
14
Q4'
14
Q1'
15
Profitable
Yet to breakeven
Growth Sales & Average Per Check (APC)
-
50
100
150
200
250
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
Revenues
APC
APC, Rs Sales, Rs MM
Growth Same Store SalesFor stores operational over 13 mo
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
SSS, Rs MM
9%Q-o-Q growth
Customer Speak
Chaiwallas
Nitin Product & BD
IIT Bombay 2007
Raghav Branding & Sales
IIT Delhi 2010
Saurabh Operations
IIT Bombay 2007
Rajat Technology NIEC 2014
Abhinav Projects
DIT 2014
Tarun Operations
IIT Bombay 2011
Vinod Operations McDonalds
Yosha HR
MA, HRDM
Investors
Series A Flipkart, Ola Cabs, Quikr, Shop
Clues
Bhavish Aggarwal Angel Investor
Founder, Ola Cabs
Buzz
TOI May 2015
Gurgaon Times Jan 2015
Gurgaon Times Jan 2015
Mint July 2014
APPENDIX
Edge QSR / Casual
Dine Alcohol driven
Food Delivery Coffee Caf Chaayos
Low Capex
High Customer Repeat
All Day
Product Stickiness
Dense Penetration
Multi Format
On-demand
Brand to Product
Menu
Menu
Menu
End