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Tea-cafe chain Chaayos has raised $45 Mn as part of its Series C funding round led by Alpha Wave Ventures.

The round also saw participation from existing investors such as Tiger Global Management, Elevation Capital and Think Investments. The startup was reportedly valued at $250 Mn.

As per company filings accessed by The Economic Times, the startup’s board passed a special resolution on June 7 to allot more than 13.89 Mn Series C preference shares at an issue price of Rs 2,514 per share to raise $45 Mn. 

Founded in 2012 by Nitin Saluja and Raghav Verma, Chaayos offers numerous tea varieties and packaged food products. It sells its flagship tea from physical outlets, while it also sells its pre-packaged snacks over online marketplaces as well as physical stores.

Chaayos had last raised $21.5 Mn via equity and debt as part of its Series B round in February 2020. Prior to that, in September 2018, it had raised $12 Mn from a slew of venture capital (VC) firms such as  SAIF Partners, Integrated Capital, among others.

The startup’s business  took a big hit amidst the pandemic as the national lockdown and subsequent apprehensions around Covid-19 shuttered stores and restricted movement. 

Chaayos competes with Chai Point in the tea segment, while it competes with players such as Starbucks, Costa Coffee and others in the overall cafe segment. 

According to a report, the Indian tea and coffee chain market is expected to grow to INR 4,540 Cr by 2023.