Fed Up With Boring Specialty Coffee Brands, Delhi Friends Build A Coffee Chain With 11 Outlets In 7 States; Clocked ₹25 Cr Revenue In FY25

In the bustling heart of Delhi, where the aroma of food mingles with the hum of ambition, two young entrepreneurs dared to dream differently.

Nishant Mitthal and Shivank Verma, both now in their early 30s, met by chance in 2018, their paths crossing through a mutual friend.

They were strangers who’d unknowingly shared the same University of Delhi college years earlier, yet their shared passion for entrepreneurship ignited a friendship that would reshape India’s coffee culture.

Frustrated by boring coffee chains in India, they founded Tan Coffee, a Delhi startup that’s now a rising star in the Indian startup ecosystem, with eleven outlets across seven states and a bold vision for national and international expansion.

 A Spark Born from Discontent:

Nishant, a business studies graduate, had already tasted success with a footwear manufacturing venture.

“I always knew I wasn’t cut out for a 9-to-5 job. I was a born entrepreneur,” says Nishant Mitthal, now the founder and CEO of Tan Coffee, during an exclusive interview with Startup Pedia.

Meanwhile, Shivank, a commerce graduate, had chased dreams of stardom in the Mumbai-based film and television industry, only to return to Delhi disillusioned.

“I had realised acting wasn’t my calling, but creating something unique from the ground up was,” shares Shivank Verma, the co-founder & COO of Tan Coffee.

Their chance meeting in 2018 was serendipitous, but it was the COVID-19 pandemic that sharpened their focus. As India’s F&B sector reeled, the duo saw an opportunity in the gaps left by coffee chains in the country.

They noticed that giants like Starbucks, Café Coffee Day, etc, served pre-cooked, reheated food, lacking the warmth and goodness of freshly prepared food.

The aesthetics of these outlets felt corporate, formal, cold, and uninviting—hardly the ‘Instagrammable coffee place near me’ that Gen Z craved.

“We wanted to create a space that felt alive, welcoming, and premium, with chill vibes for everyone,” Nishant explains to Startup Pedia.

Thus, Tan Coffee was born in December 2022 under their parent company, Jazz & Blues Hospitality LLP, with a mission to serve specialty coffee with fresh food and vibrant aesthetics.

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Brewing Tan Coffee: The First Sip in Delhi

Tan Coffee’s journey began with its first outlet in February 2023, nestled in Delhi’s upscale Hauz Khas area.

The modest 550-square-foot joint, with its earthy tones and modern design, was a bold statement against the sterile interiors of its competitors. However, the path wasn’t smooth.

“Entering a crowded coffee market was like shouting into a storm. We had to fight hard for name recognition,” Nishant admits.

Competitors dominated the segment, and retaining staff in Delhi’s cutthroat F&B scene was another nightmare. Many employees left for slightly better offers, forcing the founders to rethink their approach.

To stand out, Tan Coffee adopted a dynamic coffee and food menu, introducing new items every few months, from mocha frappes to wood-fired pizzas, to name just a few.

They tackled staff retention by offering above-market salaries, generous perks, and empowering women to lead outlets.

“Our women staff often run the stores, and that’s something we are very proud of,” Shivank shares with a smile. 

The National Expansion:

By March 2023, Tan Coffee expanded to Chandigarh and Noida, followed by Prashant Vihar in Delhi by December.

Despite high rents and the challenges of a bootstrapped startup, their first year yielded an impressive annual revenue of ₹9 crore, proving their vision had legs.

Today, with 11 outlets across Delhi, Gurgaon, Hyderabad, Jalandhar, Mohali, Faridabad, Noida, and Raipur, Tan Coffee is a force in the Indian specialty coffee landscape.

Its franchise business model, particularly the FOCO model (Franchisee Owned, Company Operated), ensures consistency across outlets and regions.

“Every new city brings fresh challenges, from cultural tastes to logistics. But our FOCO model keeps quality tight,” Shivank notes.

Each outlet, spanning 1200-1500 square feet, seats 30-60 guests in a modern, earthy ambiance that resonates pleasant vibes.

The menu is a culinary odyssey, boasting over 200 offerings across cuisines like Italian, Mexican, Continental, Pan-Asian, and Indian. Bestsellers like the Ema Datshi rice bowl and pistachio iced latte have won hearts, especially among Gen Z and young professionals.

The average bill for two, between ₹800-₹1000, reflects their premium yet accessible positioning.

“We cater to everyone—students, families, kids—but our core customer base belongs to the 20-24 age group,” Nishant says.

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Navigating Challenges:

Running a bootstrapped startup in the competitive F&B sector is no small feat. 

High rental costs in metro cities like Delhi-NCR and Hyderabad, coupled with the need for prime locations, have tested the founders’ resolve.

“Finding the right spot is half the battle. You’ll need a location that feels like a destination,” Shivank shares.

Cultural nuances in new cities like Hyderabad or Raipur have required menu tweaks, from spicier options to local-inspired dishes.

Yet, Tan Coffee’s focus on freshly prepared food and innovative beverages, like boba teas and layered drinks, sets it apart. Its spill-proof delivery packaging, a nod to convenience, boosted customer loyalty.

With a customer retention rate of over 70% and more than 5 lakh customers served in three years, Tan Coffee’s strategy is working.

“Our success comes from three factors: chill & attractive aesthetics, inclusive menus, and always putting customers first,” Shivank further explains.

The Present & the Future:

Tan Coffee’s ambitions are as bold as its brews. By the end of FY 2025-26, the startup aims to open 10 more outlets, targeting newer cities like Patna and Bangalore.

From April 2026, it plans to launch one outlet monthly in India, eyeing a presence in all 28 states and 8 union territories.

Its annual revenue for FY 2024-25 hit ₹25 crore, with a target of ₹50 crore this financial year (2025-26)—a 2X leap.

“We’ve been profitable since our first outlet, funded by our savings and family support. We believe in sustainable, long-term yet profitable growth, not burning cash,” Nishant reveals.

International expansion is next, with the UAE, Canada, and Vietnam in the founders’ sights.

“We want Tan Coffee to be a global Indian coffee chain, something that hasn’t been seen before,” Shivank concludes.

The specialty coffee market in India, projected to reach US$6.28 billion by 2030 with a 13.6% CAGR, offers fertile ground for their growth vision.

Tan Coffee’s Instagram-heavy marketing and event sponsorships are building a loyal youth fanbase, eager for the next “coffee place near me” that feels like home.

Its 200+ staff across India, modern yet vibrant outlet aesthetics, and a menu that spans diverse yet fresh food to specialty coffee are redefining what a coffee chain can be.

From the chaos of Delhi’s streets to the promise of global markets, Nishant and Shivank are brewing a legacy.

As they raise their cups to the future, one thing is clear: Tan Coffee is here to make every sip, every bite, and every moment unforgettable, clickable, and shareable.