Experiment with Chai by Techy IITians : Story of Chaayos

Chaayos Success Story : Idea, Funding, & Challenges

By Srishti Mudgal Apr 28 2021 1:37PM 3742 Read
Chaayos Success Story : Idea, Funding, & Challenges

You’ve probably heard of “Chaayos” – Experiment with Chai (Tea), one of India’s most rapidly growing tea startups. If you’re still not sure what we’re talking about, look up Chaayos wiki on Google. How can one expect brewing tea (chai) to be like just a cup of morning refreshment in a country like India, where even the most ordinary things have something surprising and new in them?

According to Nitin Saluja, the company’s CEO and founding member, the fundamental concept of Chaayos is “to give a comfortable space where you can be headed for a freshly made brewing teacup with a peaceful ambiance.”

Chaayos Success Story : How The Idea Turned Into Reality?

We’re talking about Chaayos, a company established by two IT gurus, Raghav Verma and Nitin Saluja, who earned their IIT degrees in Delhi and Mumbai, respectively. They were both working for Opera Solutions, a US consulting firm, before forming the company. Note that Nitin was a chai connoisseur and the founder of Chaayos at the same time.

During this time, Nitin met Raghav Verma through a mutual friend who worked for Opera Solutions in the United States. They both had brilliant ideas and set out to make their dream a reality. They quit their well-paying job and began working on their new venture full-time, 24 hours a day, seven days a week. Nitin Saluja is in charge of product growth, as well as supply and logistics, while Raghav is in head of marketing and business development. The company was called CHAAYOS, and the first location opened in Gurugram in November 2012.

From a marketer’s viewpoint, chai is mostly anything and embraced as a commodity as plain as that. Chaayos, on the other hand, offers a total of 25 varieties of tea that can be customized in 12k different ways.

Chaayos Funding : A Financially Sound Startup

Chaayos, like every other new startup, needed funding to begin operations, and Zishaan Hayath agreed to help him raise funds in the angel round. You may be shocked to learn that Chaayos was able to secure a total of $5 million in funding from TGM, also known as Tiger Global Management.

Chaayos believes that the next period of development will be fueled by the tea delivery service’s philosophy, which will be perfectly packaged tea combinations sold in its cafe and online marketplaces like Snapdeal and Amazon. Chaayos can sell more than 9,800 cups of tea in a single month and aims to sell 4 million cups in 18 months (1.5 years) to become the leading chai supplier. They’ve partnered with several logistics companies to get their chai delivered in under 15 minutes for the same purpose.


The business is a firm believer in the adaptability of tea with a wide variety of vibrant flavors. The CHAAYOS have demonstrated their one-of-a-kind tea menu, which cannot be said to have been produced without chai experimentation. As a result, the tagline they use is accurate.

The environment of the outlets is the second most fascinating feature they have included in their line of work. CHAAYOS is a cafe that portrays the “Chai way of life.” The cafe’s interiors are essential to the actual concept of lamps, tea, and chai samples, which demonstrate how much experimental nature the company is currently holding off.

Chaayos - The Challenges

Chaayos devised a plan to open many cafes to meet the goals and reach out to all chai lovers. They continued to invest in their current customers while the plan was in place. They were motivated by assuming that returning customers yielded a higher return on investment (ROI) than new customers.

  • Maintaining customer stickiness Chaayos aimed to increase the following metrics that described their customers’ shopping patterns to increase profitability from their current customers:
    • Rate of repeat purchases: Of all users who placed an order for the first time, 44% returned to place another order. In marketing jargon, this type of user activity is known as repeat transactions, and it’s measured as a repeat purchase rate, repeat customer rate, reorder rate, or even customer retention rate.
    • Purchase frequency: The number of times Chaayos customers purchased in a given period.
  • Bringing back lost customers Early on, Chaayos found that spending money on acquiring users who only transacted for an introductory offer resulted in temporary increases in footfall. In the long run, it resulted in 1. a loss of revenue and the time and effort invested in acquiring the user. 2. And there’s a chance you’ll miss out on opportunities to grow your relationship over time.
    Chaayos would save a lot of time, resources, and effort if they could streamline their efforts to recover the missing customers.
  • Growing with customer feedback Customer feedback is one of the most credible sources of tangible data that can be used to make future business decisions, according to Chaayos. It was simple to gather input, but turning it into actionable takeaways proved difficult. Customer input from their retail cafes, for example, was not as easy to chart. It was a roadblock in getting useful information about their employees’ results.

Chaayos : Social Media

  • Facebook It has 53,000 followers at the moment. It allows users to interact with customers, share stories, and collect valuable suggestions for development.
  • Instagram Chaayos currently has 22,700 Instagram followers. It’s used for promoting events, celebrity engagements, and insightful blogs, among other things.
  • Twitter Twitter is used by the brand to promote various promotions and commercials, as well as to run campaigns and coupon codes.
  • YouTube Chaayos creates multimedia content for YouTube promotional activities to support the brand’s unique selling proposition.
  • Offline Chaayos promote their products in malls, gyms, office buildings, and local markets.


Chaayos is one of the tens of thousands of success stories of people who began with an idea. I worked on it and turned it into a profitable company. Your story may be the next to be told. Keep looking for opportunities; they could be right in front of you as you drink your tea.

Srishti Mudgal
Srishti Mudgal View More Posts

I am a psychology student with my heart set on writing and creating content. I am only a fresher in this field and eager to learn more about it. I am just another carbon fellow with huge dreams

Leave a Reply

Your email address will not be published. Required fields are marked *

enter How much is