Indore-Based Tea Startup Chai Sutta Bar Reports Rs 5.9 Crore Revenue in FY25

Chai Sutta Bar, a tea chain founded in 2016, reported a 28% decline in revenue in FY25 to Rs 5.9 crore, down from Rs 8.2 crore in FY24, according to its financial statements sourced from the Registrar of Companies (RoC).

The company generated Rs 2.5 crore from franchise sales, accounting for nearly 44% of its total operating revenue in FY25. Revenue from product sales stood at Rs 2.16 crore, while royalty income contributed Rs 1 crore, representing 19% of operating revenue. Together, these streams took the company’s operating revenue to Rs 5.7 crore in FY25, compared to Rs 6.9 crore in FY24. The remaining income came from other sources.

Employee benefit expenses remained largely stable at Rs 3.31 crore in FY25, slightly up from Rs 3.12 crore in FY24. The company reduced its marketing expenses by more than 50%, bringing them down to Rs 40 lakh in FY25 from Rs 91 lakh in FY24. At the same time, the company’s total expenses increased by 17% to Rs 8.8 crore in FY25, compared to Rs 7.5 crore in FY24.

Consequently, the company slipped into losses, reporting a net loss of Rs 2.9 crore in FY25, compared to a profit of Rs 51 lakh in FY24. On average, the company spent Rs 1.54 to earn every rupee of operating revenue in FY25, up from Rs 1.09 in FY24.

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About Chai Sutta Bar

Chai Sutta Bar (CSB) is a prominent Indian tea chain founded in 2016 by entrepreneurs Anubhav Dubey and Anand Nayak in Indore, Madhya Pradesh. Later, the duo was joined by Rahul Patidar. The brand is known for serving a variety of tea flavours in eco-friendly kulhads (clay cups) within a distinctive bar-style café setting.

The brand currently operates in 370+ cities across India and has expanded internationally to the UAE (Dubai and Abu Dhabi), Nepal, and Oman. Chai Sutta Bar primarily follows a Franchise Owned, Franchise Operated (FOFO) model, under which the company licenses its brand while providing operational support to franchise partners.

Chai Sutta Bar specialises in kulhad chai with flavours such as Masala, Ginger, and Rose. Its menu also includes cold coffees, milkshakes, and snacks such as burgers, sandwiches, and its signature Kulhad Pizza. Notably, the company remains bootstrapped, operating without external investor funding.

As of March 31, 2025, Anubhav Dubey and Anand Nayak each held a 40% stake in the company, while Rahul Patidar held the remaining 20%.

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