Kolkata-based F&B start-up Chai Break has received Rs 5 crore angel funding from Mumbai’s Venture Catalysts. The company plans to use the funds raised for the expansion of its chain outlets, mostly in Tier II cities.
According to a PTI report: Chai Break, founded by ALP Retail, is a bootstrapped startup which has 11 outlets across Kolkata and Bhubaneswar as of now, each with an annual turnover of Rs 1.5 crore.
Chai Break’s Co-founder Anirudh Poddar said that the company plans to open outlets in Tier II cities like Patna and Ranchi.
“We plan to reach 10 more cities in the next 2-3 years with special focus on Tier II locations and aiming at a turnover of Rs 50 crore,” Poddar was quoted by PTI as saying.
The other co-founder Siddarth Ladsariya said that a part of the proceeds of the funding would be utilised to set up a central kitchen at a cost of Rs 70-80 lakh, adding that their venture has been making profits since inception.
He said that so far, all the outlets are owned and operated by the company. “Now, we want to follow the FOCO model (franchise owned and company operated),” he was further quoted by PTI as saying.
The company has 300 employees as of now, which is expected to go up to 1,000 post-expansion. There are also plans to set up outlets overseas in 7-8 years, Poddar said.