Chai Point raises $10 million

Eight Roads Ventures, DSG Partners and existing partner Saama Capital participate in funding round

Bengaluru: Mountain Trail Foods, owner of the Chai Point network of tea stores, has raised nearly $10 million, a funding round led by Eight Roads Ventures, DSG Partners and existing partner Saama Capital, according to documents filed by the company with the Registrar of Companies.

Eight Roads Ventures confirmed the investment.

“With its focus on operations, supply chain and consumer experience, Chai Point is well positioned to emerge as one of the leading national brands in this space," said Kabir Narang, managing director at Eight Roads Ventures (formerly Fidelity Growth Partners India).

The investment in Chai Point comes months after Tiger Global invested $5 million in Gurgaon-based Chaayos, another tea chain.

“We see Chai Point touching 200 stores in a short span, with a big push on the technology front where we enable more deliveries through mobile apps," said Ash Lilani, San Francisco-based managing partner and co-founder at Saama Capital, who first invested in the company early 2014.

India consumes roughly 20% of the world’s tea. The tea market in India is estimated to be worth 33,000 crore and has been growing at 15% annually. Tea consumption in India is 8-9 times that of coffee. The services side has, however, largely been restricted to roadside vendors.

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