Specialty coffee chain Blue Tokai is preparing for its next phase of growth, with plans to more than triple its store network, accelerate revenue, enter international markets and move towards profitability.
The company plans to expand from around 240 outlets to 800 stores by FY30. As part of this strategy, Blue Tokai aims to open approximately 120 new cafés during the current financial year, strengthening its presence across major metropolitan centres while entering newer markets such as Ahmedabad and Lucknow.
The expansion reflects Blue Tokai’s confidence in the long-term opportunity for branded cafés in India. Co-founder and CEO Matt Chitharanjan believes the market remains significantly under-penetrated despite increasing competition, leaving substantial room for organised coffee chains to grow.
Alongside its domestic expansion, Blue Tokai is taking its first major step into international retail. The company is set to open its first overseas outlet in Dubai, marking the beginning of its global growth journey.
Revenue growth is also central to Blue Tokai’s plans. The company expects revenue to increase by more than 50% to ₹800 crore this financial year, following nearly sevenfold growth over the past four years. It is targeting profitability by March 2028, with a denser store network expected to improve operating efficiencies as the business scales.
Blue Tokai is also in preliminary discussions to raise at least $100 million from private equity firms, with the proposed round expected to include both primary capital and secondary share sales. Valuation discussions remain at an early stage. The company also plans to raise an additional ₹150 crore before funding future expansion internally.
Backed by investors including Verlinvest, Blue Tokai is considering an initial public offering within the next five to seven years, adding another long-term milestone to its growth roadmap.
The company’s expansion comes despite challenges including higher coffee prices, supply chain risks and rising employee and real estate costs. However, Blue Tokai is betting on the habitual nature of coffee consumption and the quality of its core beverage offering to drive customer retention.
With an ambitious 800-store target, rapid revenue growth, international expansion, potential fundraising and a clear path towards profitability, Blue Tokai is building its next phase around scale. From deepening its presence across India to entering Dubai, the specialty coffee chain is positioning itself for significant growth over the coming years.
Source: Based on reporting by ET Retail, with additional editorial adaptation and analysis.
