Startup Originals Team
India has long been known as a tea-loving nation, but in recent years, a quiet coffee revolution has transformed urban consumer culture. At the heart of this change is Blue Tokai Coffee Roasters, a brand built by dreamers who believed Indians deserved better-quality, transparency, and a genuine coffee experience. From a tiny roasting machine in a spare bedroom to a network of over 130 cafes and a thriving online D2C business, Blue Tokai’s journey is as rich and nuanced as its beans.
The Founders: Brewing More Than Coffee
In 2013, married couple Matt Chitharanjan and Namrata Asthana founded Blue Tokai in Delhi with little more than savings and passion. Matt, originally from the U.S., brought finance and economic expertise, while Namrata’s background in psychology, design, and communications would define Blue Tokai’s style and voice. Their complementary skills-combined with a shared frustration over India’s instant coffee status quo-sparked an idea that quickly took root.
Finding a Market Gap
India is one of the world’s top coffee producers, yet most premium beans were exported. The domestic market was flooded with instant blends and sugary café drinks, leaving true coffee lovers searching for options. Estate-level sourcing, transparency, and direct sales simply didn’t exist at scale. Spotting this gap, Matt and Namrata began roasting beans at home and selling to friends, family, and local markets.
Humble Beginnings: Bedroom Roastery
Armed with ₹10 lakh, their first roaster was a Taiwanese tabletop model installed in Namrata’s parents’ house. The founders roasted, packed, and labeled coffee by hand, juggling new parenthood and all aspects of the business themselves. Feedback was immediate and positive-Blue Tokai’s coffee tasted unlike anything most Indians had tried before.
Growing Pains and Scaling Up
Demand grew rapidly, straining capacity and resources. A major upgrade was needed, leading to the purchase and craning-in of a large Probat roaster. Power cuts, compliance headaches, and neighborhood aroma complaints followed. Still, growth remained steady. The brand name, “Blue Tokai”-derived from the South Indian word for peacock tail-was chosen to honor Indian heritage.
The first roastery opened in Saidulajab, Delhi, situated next to a cow shed. Word-of-mouth and a focus on single-estate beans, traceability, and educational content helped establish a loyal following. Early hires, such as operations lead Shivam Shahi (who later became co-founder), built out supply chain and compliance systems, further professionalizing the company.
From Roastery to Café Chain
Blue Tokai’s first café arose almost by accident-a few chairs in their roastery for curious walk-ins. The concept took off, inspiring a second location in Mumbai and proving customers wanted more than just packaged beans; they craved the experience. Cafés quickly became a central part of the brand’s identity and high-margin business.
By 2025, Blue Tokai had expanded to over 130 outlets across India, combining café, retail, and online channels, with plans to reach 350 stores by 2027.
Marketing: Education Over Lifestyle
Blue Tokai’s marketing focus is on transparency and education, not just lifestyle branding. Packaging details the estate, roast profile, and tasting notes. The brand creates guides and blog posts to demystify coffee brewing, while in-café experiences allow customers to interact, learn, and build trust. The founders believe every aspect of the story, from the bean to the cup, matters.
Setbacks and Resilience
Rapid growth brought challenges, including regulatory issues. In 2019, their Defence Colony café and main roastery were sealed by Delhi Police due to compliance problems, forcing the team to return operations to their original home. The wake-up call led Blue Tokai to beef up systems, legal compliance, and backend efficiency.
Funding and Milestones
What began as a bootstrapped startup gradually attracted investors. Over the years, Blue Tokai has raised over $50 million (~₹415 crore) via seed, pre-series B, Series B, and Series C rounds, led by Snow Leopard Ventures, Anicut Capital, A91 Partners, 8i Ventures, and others. These funds have fueled café expansion, backend improvements, and new international ventures.
Financial Performance: From Startup to Market Leader
- FY24 Revenue: ₹216 crore (up 69% YoY)
- Café business: ₹128 crore
- Online sales: ₹40 crore
- B2B revenue: ₹38 crore
- Losses: ₹62 crore
- EBITDA Margin: Improved to -16.6% from -27.1% in FY23
- Current ARR: Achieved ₹400 crore, targeting ₹1,000 crore in the next 3 years
Innovation and International Expansion
Blue Tokai is not just growing in India. In 2024, the brand opened its first international store in Tokyo, Japan, introducing estate-traceable Indian coffee to a discerning global market. Back home, they are exploring new products like ready-to-drink beverages, brewing gear, and subscription offerings. The brand continues to invest in tech, logistics, and workforce for long-term sustainability.
The Road Ahead
Blue Tokai is now focused on:
- Expanding into Tier 2 cities
- Scaling global operations beyond Japan
- Increasing store-level profitability
- Launching innovative product lines and experience centers
- Strengthening its D2C and quick-commerce channels
The journey from a tiny home roastery to a transformative café chain reflects not just business acumen, but a deep commitment to quality and community. As Blue Tokai continues to grow, its mission remains clear: celebrate Indian coffee’s heritage, foster transparency, and bring the best brews to tables around the world.
