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Founded by Nitin Saluja and Raghav Verma in 2012, Chaayos is a chai-cafe chain that sells numerous varieties of tea (chai) in dine-in, take-aways and delivery models.
In FY21, the brand saw a huge drop in its revenue numbers compared to the figures of FY20. To be precise, it was a 44.8% decrease in revenue to Rupees 54.85 crore in FY21 from Rupees 99.4 crore in FY20. This fall was mainly because of the Covid-19 pandemic and lockdowns that followed in the country.
Now the popular tea brand seems to have bounced back and has recorded a revenue of Rupees 135 crore in FY22. This is a 145% growth from last year.
However, Chaayos' losses have spiked by 35.5% to Rupees 71 crore in the same period.
Let us look at the figures in more detail:
- Revenue from the sale of tea and premixes was Chaayos's only operating income source.
- Its operating income has increased 2.45x to Rupees 135 crore in FY22 from Rupees 55 crore in FY21.
- The company's non-operating income contracted by 19% to Rupees 5.21 crore in FY22.
- The largest cost centre of the brand comes from the cost of materials consumed for the core business. It is Rupees 53 crore in FY22.
- Chaayos also recorded a significant increase of 64% in employee benefits costs to Rupees 51 crore in FY22 from Rupees 31 crore in FY21.
- The above is because the company hired more employees after the Covid-19 pandemic.
- The cost of rent also increased by 40% to Rupees 28 crore in FY22.
- Additional advertising and commission costs resulted in increasing the overall cost of the company by 86% to Rupees 211 crore in FY22 from Rupees 113 crore in FY21.
Since the founders are planning to increase the number of employees after finishing the fundraising and open up 100 stores by the end of the year and another 300 by 2022-23, it is predicted that the costs of the company will increase in the current fiscal year.
To view the brand and its products, visit its website https://chaayos.com/.