Blue Tokai Eyes Triple-Digit Growth Before IPO

19 Nov 2024 , 04:13 PM

Before deciding whether to go public, Blue Tokai, an Indian coffee business, wants to increase its yearly sales by almost three times by 2027, its CEO told Reuters on Monday.

In India, coffee culture is expanding rapidly as more and more wealthy people in larger cities work and meet in cafés.

According to its CEO and co-founder Matt Chitharanjan, Blue Tokai intends to run roughly 350 cafes in locations like Hyderabad and Chennai over the next three years in order to capitalise on India’s rapidly expanding $300 million specialised tea and coffee café sector. The company, which has more than 130 cafés at the moment, is supported by the Belgian investment group Verlinvest.

By 2027, the company hopes to generate 10 billion rupees ($118.5 million) in income annually, according to Chitharanjan. This year, it is expected to generate 3.7 billion rupees, or its revenue run rate.

Making sure the company has “healthy” profit margins will make it “an attractive IPO candidate,” he stated without providing any details.

Chitharanjan isn’t thinking about an IPO right now, despite the fact that numerous consumer-facing companies, like the food and grocery delivery service Swiggy and the retailer of baby supplies FirstCry, went public this year, riding a stock market boom.

According to him, “well-capitalized” Blue Tokai has “patient investors” who are not pressing for an early IPO. “Market conditions will fluctuate and we are more concerned about reaching our internal goals,” he added.

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