New Delhi: Specialty coffee chain Blue Tokai is planning a major expansion in India, aiming to increase its store network from 240 outlets to 800 by FY30 as demand for premium coffee continues to rise.
The company, operated by Muhavra Enterprises Pvt. Ltd., plans to open around 120 new cafés during the current financial year, strengthening its presence in metro cities while expanding into emerging markets such as Ahmedabad and Lucknow.
Growth driven by rising demand
Blue Tokai co-founder and Chief Executive Officer Matt Chitharanjan said India’s branded café market remains significantly underpenetrated despite increasing competition.
He noted that the country still offers substantial growth opportunities as consumers increasingly embrace premium coffee experiences.
The company competes with established brands including Starbucks India, Café Coffee Day, Barista and Third Wave Coffee.
Starbucks also expanding aggressively
Starbucks, which operates in India through a joint venture with Tata Consumer Products, currently has more than 500 stores across the country. The global coffee chain plans to add up to 100 new outlets every year, highlighting the growing demand for premium cafés among Indian consumers.
The expansion of both brands reflects changing consumer preferences, supported by wider availability through digital platforms, food delivery services and quick-service retail formats.
According to market research firm IMARC Group, India’s café market, valued at $425 million in 2025, is expected to grow at a compound annual growth rate of 11.14 per cent, reaching $1.15 billion by 2034.
Revenue growth and IPO plans
Blue Tokai expects its revenue to grow by more than 50 per cent to Rs 800 crore during the current financial year after recording nearly sevenfold growth over the past four years.
Backed by investors including Verlinvest, the company is also considering an initial public offering (IPO) within the next five to seven years, providing an exit opportunity for early investors.
Before achieving self-funded growth, Blue Tokai expects to raise around Rs 150 crore over the next few years to support its expansion plans.
International debut and profitability target
The coffee chain is also set to expand overseas, with its first international outlet scheduled to open in Dubai next week.
Despite rising coffee prices, supply chain challenges and increasing real estate and employee costs, the company remains confident of achieving profitability by March 2028.
Blue Tokai believes a denser store network will help improve operational efficiency by reducing logistics and staffing costs while strengthening its position in India’s rapidly growing premium coffee market.