Chai Pe Charcha: The Top Trends and Innovations in the Indian Tea Industry

India’s Tea Journey: From British Cultivation to Global Dominance

Despite India’s long history with tea, dating back over a century, few may know that the British initiated its cultivation in the 1850s to challenge China’s tea trade dominance.

Fast forward over 150 years, India has emerged as the world’s second-largest tea producer and the leading country in tea exports and consumption. Remarkably, India’s tea production surged to 1,374.97 million kgs in 2022-23, up from 1,344.40 million kgs in 2021-22.

India’s Booming Tea Market Projected to Reach $14.7 Billion by 2032

The IMARC Group predicts that India’s thriving tea market will grow at a CAGR of 3.2%, reaching $14.7 billion by 2032 from $11.1 billion in 2023.

New-age founders in India are eager to tap into this expanding market, offering more than just a refreshing cup of tea. However, their ambitions faced a major challenge during the Covid-19 pandemic, which brought the economy to a halt with multiple lockdowns.

Since the pandemic’s impact has lessened, the market has rebounded significantly. For instance, Chaayos reported a 77% year-on-year increase in operating revenue to INR 239 crore in the financial year 2022-23 (FY23), and Bengaluru-based Chai Point is preparing to go public amid the startup IPO surge.

This sector is also witnessing the rise of numerous local D2C brands aiming to penetrate the Indian tea market, which has traditionally been dominated by legacy FMCG giants. These emerging players differentiate themselves with unique selling points such as quality, farm-freshness, and diverse offerings beyond the regular cup of chai.

Riding the wave of growing online marketplace adoption, increasing disposable incomes, and a willingness among Indians to experiment beyond standard CTC (crush tear curl) tea, these D2C brands are making significant inroads. For example, Dorje Teas gained attention on Shark Tank Season 2, securing a deal from Anupam Mittal, Peyush Bansal, and Vineeta Singh.

More recently, Bengaluru-based QSR chain Boba Bhai raised funds at a valuation of INR 50 crore within its first year.

Recognizing the potential of this burgeoning sector, Inc42 has compiled a list of top Indian D2C tea brands that are transforming the chai landscape.

Therefore, on this International Tea Day (May 21), let’s explore the 14 tea brands making a significant impact on the Indian tea market.

1. Aromica Tea

After nearly two decades with UK-based tea producer McLeod Russel, Ranjit Baruah founded Aromica Tea in 2018. Based in Guwahati, Aromica Tea offers around 26 unique tea blends, including six Assam varieties, available through its online portal.

The startup launched its initial five blends at the India International Tea & Coffee Expo in Kolkata in 2018. Today, Aromica Tea enjoys robust online sales. In addition to direct-to-consumer sales, Aromica Tea engages in retail and bulk distribution through an extensive network. Its clientele includes the Guwahati refinery, OIL, IIE, various departmental stores in Assam, and several corporate clients.

2. Chaayos

Founded by IIT graduates Nitin Saluja and Raghav Verma in 2012, Chaayos delivers a Starbucks-like chai experience tailored for Indian consumers. This Delhi NCR-based tea cafe chain now boasts over 225 stores across India.

Originally launched as a tea startup, Chaayos has diversified to offer freshly made and packaged food, establishing a robust supply chain for snacks and creating a food cloud kitchen brand to navigate the challenges of the lockdown-induced pandemic.

In FY23, Chaayos achieved a 77% year-on-year (YoY) increase in operating revenue, reaching INR 239 Cr. Supported by investors such as Tiger Global Management, Elevation Capital, and Think Investments, the startup has secured $85.54 Mn since its inception. Chaayos competes with Chai Point, Chai Sutta Bar, MBA Chaiwala, Starbucks, Third Wave Coffee, and Blue Tokai.

3. Chai Sutta Bar

Founded by Anubhav Dubey and Anand Nayak in 2016, Chai Sutta Bar is an Indore-based startup specializing in kulhad (earthen cup) chai. Since its inception, it has expanded to over 550 outlets in 320 cities across India.

Chai Sutta Bar sells an average of 4.5 lakh kulhad chais in various flavors, including adrak, elaichi, chocolate, rose, paan, and kesar.

In FY23, this bootstrapped startup reported a revenue of INR 10 crore, while its franchises generated INR 150 crore.

4. Chaipatty Teafe

Founded in 2010 by Chirag Yadav, a graduate of Delhi College of Engineering (DCE), Chaipatty Teafe offers a distinctive experience for tea enthusiasts, serving freshly made kulhad chai and cutting chai with a variety of snacks.

Combining the concepts of a tea house and a café, Chaipatty Teafe also doubles as a mini art studio. It showcases jewelry and home decor items and hosts workshops on photography, filmmaking, pottery, and bartending. The chain has proudly served over 5 lakh customers through its three outlets.

Headquartered in Bengaluru, the bootstrapped Chaipatty Teafe competes with other popular tea chains such as Chai Point, Chaayos, Chai Kings, Chaiwaale, and Tea Trails.

5. Chai Point

Founded by Amuleek Singh Bijral in 2010, Chai Point set out to become the leading tea destination for corporate employees. Inspired by Starbucks, it established outlets in retail locations, airports, and business parks, rapidly expanding across major cities.

Chai Point’s flagship product is boxC.in, an IoT-enabled automated tea and coffee dispenser that uses fresh milk.

Additionally, Chai Point has expanded its reach through various channels, including local stores and cloud kitchens.

The Bengaluru-based startup has raised a total of $46 million from investors such as Saama Capital, Eight Road Ventures, and InnoVen Capital. In FY23, Chai Point’s revenue from operations reached INR 200 crore, marking an 88.7% increase from INR 106 crore in FY22.

6. Dorje Teas: Crafting Wellness One Cup at a Time

Established in 2021 by Sparsh Agarwal and Ishaan Kanoria, Dorje Teas stands out as a premier wellness tea brand, offering a diverse range of single-origin organic black, green, and herbal teas, all USDA-certified.

Serving tea enthusiasts with a passion for quality, Dorje Teas retails its traditional specialty blends via its website, as well as prominent ecommerce and quick-commerce platforms, complemented by a modest offline presence. Noteworthy is its “Make Your Own Blend” service, empowering tea aficionados to craft personalized blends from an array of tea flavors.

The brand gained recognition for securing a significant INR 30 Lakh investment from prominent investors including Anupam Mittal of Shaadi.com, Peyush Bansal of Lenskart, and Vineeta Singh of Sugar during Shark Tank India’s Season 2.

Reporting an impressive revenue of INR 1.3 Cr for FY23, Dorje Teas further solidified its position by achieving a noteworthy monthly recurring revenue (MRR) of INR 30 Lakh in FY24.

7. Gardner Street: Crafting Premium Tea Experiences

Established in 2017 by Rashi Singhvi, Gardner Street stands out as an innovative tea brand, presenting a diverse range of premium whole leaf teas and herbs. Based in Mumbai, this startup introduces an array of tea products infused with natural and therapeutic ingredients such as cinnamon, hibiscus, rose petals, and lemongrass.

With a distinctive blend of ingredients, Gardner Street offers a selection of 25 tea blends, along with gifting solutions and brewing accessories. Despite being bootstrapped, it competes vigorously with renowned brands like Teahouse, Vahdam, and Brewhouse Tea.

8. No. 3 Clive Road: Rediscovering Tea Heritage

Following a successful career spanning two decades in economics and finance in the US, Radhika Chopra returned to India to launch No. 3 Clive Road, a direct-to-consumer (D2C) tea brand named after her father’s birth address in New Delhi.

This startup sources premium full-leaf teas and incorporates natural ingredients to curate 29 exquisite tea recipes available on its online platform. Many blends pay homage to historical Indian cities, such as the Jaipur blend, a rich fusion of Assam tea, cocoa, dried orange, and rose petals, or the Aurangzeb blend, combining ginger and cardamom with hints of rose, jasmine, and marigold.

9. Teabox: A Premium Tea Brand Redefining the Tea Experience

Established in 2013 by Kausshal Dugar, Teabox, headquartered in Bengaluru, specializes in premium teas, focusing on vertical integration across sourcing, branding, and distribution.

Teabox offers an extensive product range, including black, white, green, and oolong teas infused with flavors like cinnamon, ginger, jasmine, fennel, and rose.

Partnering with approximately 200 plantations across Darjeeling, Assam, Sikkim, and Meghalaya, Teabox swiftly ships its products to over 125 countries from its warehouses within just seven days.

Backed by prominent investors including Accel Partners, NB Ventures, Ratan Tata, and Robert M. Bass, Teabox has secured over $13 million in funding to date. It competes with notable brands such as Vahdam, Brewhouse Tea, and Blue Tea.

10. Tearaja: Transforming Tea Consumption Globally

Founded in 2015 by Manish Jain, Tearaja boasts a remarkable achievement of selling over 100 million cups of tea worldwide since its inception. Jain, hailing from a family with over two decades of experience in the tea industry, kickstarted the brand with a loan of INR 10 lakh from his family.

Tearaja operates as a direct-to-consumer (D2C) startup, sourcing tea from Kolkata and Darjeeling gardens immediately after production and subjecting it to a rigorous five-step testing process to ensure freshness.

Since its digital transition in 2015, Tearaja has consistently grown at a rate of 1.5X to 2X annually. In FY21, the brand shipped around 18,000 units of premium tea, witnessing a substantial increase to 30,000 units shipped by the close of FY22, marking a remarkable 66% surge in sales.

11. Tea Trunk

Founded by tea sommelier Snigdha Manchanda in 2013, Tea Trunk stands out as a premium direct-to-consumer (D2C) tea brand offering a curated collection of 65 unique tea blends. Sourcing directly from farmers, the brand ensures freshness and quality in every batch, priced affordably between INR 200 to INR 2,000. With a commitment to natural ingredients and flavor-free products, Tea Trunk exports its tea bags to over 15 countries, alongside its presence on ecommerce platforms and its own website. Noteworthy investors include ex-OYO senior executive Mandar Vaidya and former Delhivery executive Vaibhav Suri.

12. The Hillcart Tales Tea

With a rich heritage spanning over 120 years, The Hillcart Tales reimagines traditional tea craftsmanship for the modern age. Founded by Indian entrepreneur Ashutosh Ghosh and revived by his great-grandson Ambarish Ghosh in 2016, the D2C offshoot procures handcrafted blends directly from auctions and select gardens. Offering over 32 blends packaged in various combinations, the brand reaches customers in more than 50 countries through its website and major ecommerce platforms.

13. Udyan Tea

Launched in 2012 by Punit Poddar, Soveet Gupta, and Parvez Gupta, Udyan Tea epitomizes premium tea experiences and custom gifting solutions. Operating from Siliguri, the startup has expanded its reach to over 40 countries, selling more than 20 million cups of tea through its website and online channels. With a diverse collection of over 100 teas sourced from top gardens in India and Nepal, Udyan Tea continues to grow its presence across Tier I cities in India and selected international markets.

14. Vahdam Teas

Spearheaded by fourth-generation entrepreneur Bala Sarda, Vahdam Teas has revolutionized the global tea market since its inception in 2015. Celebrated for its ‘Made in India’ teas, Vahdam competes globally with renowned brands like Teavana and Twinings Tea. With a presence in over 100 countries and endorsements from influential personalities like Oprah Winfrey and Ellen Degeneres, Vahdam achieved profitability in FY21, boasting a net revenue exceeding INR 160 Cr. Valued at INR 700 Cr post its last fundraising in 2021,Vahdam Teas continues to redefine the tea industry landscape.