Welcome to Money Making Story,

Today, we’re thrilled to share the story of Matt & Namrata, who transformed their love for coffee into India’s leading specialty brand, Blue Tokai, now valued at ₹650 crore.

In this discussion, we’ll discuss his:

• Top Advice

• The Genesis of Blue Tokai: Passion Brews a Business

• The Global Coffee Culture and India’s Gradual Shift

• Top 21 Excel Formulas

• Elevating Coffee Standards

• Financial Milestones and Growth Strategy

• The Art of Coffee Roasting

• Cultivating Community: More Than Just Coffee

• Strengthening Relationships Across the Supply Chain

• A Measured Approach to Expansion

• Lessons from Blue Tokai’s Journey

• A Story Worth Reading

Top Advice:

"A relentless commitment to quality, transparency, and strategic growth can redefine an entire industry."

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In a country where tea has traditionally been the go-to beverage, Blue Tokai has emerged as a significant player in India’s evolving coffee culture. With a valuation of ₹650 crores and annual revenue surpassing ₹130 crores, Blue Tokai has made considerable strides in India’s ₹4,000 crore coffee market. Known for its commitment to quality, freshness, and transparency, the brand has become a preferred choice for coffee enthusiasts, second only to Starbucks in its influence among Indian consumers.

The Genesis of Blue Tokai: Passion Brews a Business

The turning point for India’s coffee landscape came with Matt Chitharanjan, the co-founder of Blue Tokai. Raised in the United States, Matt was accustomed to the ritual of drinking high-quality coffee daily. When he relocated to Chennai in 2011 for work, he noticed a glaring gap in the market.

Driven by this realization, Matt and his wife, Namrata Asthana decided to take matters into their own hands. They started Blue Tokai as a modest home roastery in Delhi, initially roasting coffee in small batches to ensure freshness and flavor. Over time, their passion project grew into a national brand, boasting over 100 outlets across India.

Their approach was straightforward but effective:

This philosophy laid the foundation for Blue Tokai’s success.

The Global Coffee Culture and India’s Gradual Shift

Globally, coffee holds the position of being the second most consumed beverage after water and ranks among the top 10 most traded commodities alongside crude oil, gold, and copper. Its cultural significance spans centuries, influencing social habits and economies worldwide.

In certain cultures, the love for coffee is so deep-rooted that it has even influenced social norms.

This anecdote highlights coffee's emotional and cultural weight beyond being just a beverage.

However, India has been slower to align with global coffee trends. While many countries had embraced the "third wave" of coffee—emphasizing specialty beans, direct sourcing, and artisanal brewing methods—India remained largely within the "second wave," focusing on café culture rather than coffee craftsmanship.

Chains like Café Coffee Day (CCD) dominated the landscape, operating over 1,200 locations and capturing nearly 50% of the café market. Their model was simple: offer a space for people to meet, work, and relax over an affordable cup of coffee. However, quality wasn’t necessarily the priority.

In 2012, the arrival of Starbucks in partnership with Tata introduced a more premium café experience. The brand emphasized ambiance and customization, but still, the market lacked a focus on specialty coffee—coffee that not only tastes better but also carries a story from farm to cup.

Top 21 Excel Formulas

Elevating Coffee Standards

A Focus on Quality

Blue Tokai places quality at the heart of everything they do. They exclusively source 100% Arabica beans, prized for their complex flavors and smooth profiles. To maintain freshness, they roast beans only after receiving an order, ensuring that each bag reaches customers within a four-week peak flavor window. This approach educates consumers about the importance of fresh coffee and delivers a noticeably richer taste.

Farmers and Consumers

Transparency defines Blue Tokai’s approach—from farm to cup. They work directly with farmers in Karnataka, Kerala, & Tamil Nadu, ensuring fair compensation and consistent recognition. Every coffee pack includes the name of the farm where the beans were grown, connecting consumers directly with the origin of their coffee. This practice not only strengthens farmer relationships but also gives consumers clarity and trust in what they’re drinking.

Blending Online and Offline Experiences

Starting with an online store, Blue Tokai quickly recognized the value of physical cafes to introduce more people to specialty coffee. They opened cafes in busy urban centers, offering customers an opportunity to experience their brews in a relaxed setting. These cafes also serve as education hubs where people can learn about brewing techniques and the coffee-making process. Today, the brand plans to scale up to 350 outlets in the next three years, aiming to reach an annual revenue of ₹1,000 crore by 2027.

Financial Milestones and Growth Strategy

Blue Tokai’s growth has been steady and calculated. In FY 2023-24, they recorded ₹221.1 crore in revenue, a 72% increase from the previous year. Their success comes from a balanced business model that combines direct-to-consumer sales, in-store experiences, and B2B partnerships. With over $80 million in investments and a $35 million Series C funding round completed in 2024, Blue Tokai is on a path to further strengthen its market position.

The Art of Coffee Roasting

Science Meets Passion

Roasting coffee is both an art and a science. Blue Tokai's roasters meticulously adjust temperature and timing to bring out unique flavor profiles in each batch. The process is tailored to highlight the natural characteristics of the beans—whether fruity, nutty, or chocolaty—ensuring that every cup offers a distinct taste.

Brewing a Culture of Knowledge

Education plays a central role in Blue Tokai’s mission. Through workshops, barista courses, and online resources, they teach customers about coffee origins, brewing methods, and flavor profiles. Their website features in-depth guides on everything from pour-over techniques to cold brews, helping coffee lovers brew better at home.

Coffee with a Conscience

Blue Tokai is committed to sustainability, focusing on eco-friendly farming, ethical sourcing, and waste reduction. They encourage farmers to adopt organic practices and work to minimize their carbon footprint by using compostable packaging and promoting recyclable materials in their cafes.

Cultivating Community: More Than Just Coffee

Blue Tokai’s journey from a small home roastery to a ₹650 crore enterprise is more than just a business success story—it’s a reflection of how passion, transparency, and strategic thinking can disrupt an industry.

By bridging the gap between Indian coffee farmers and urban consumers, they’ve not only elevated the quality of coffee available in India but also empowered smallholder farmers. Their efforts have introduced Indian consumers to specialty coffee in a way that’s approachable and educational.

In many ways, that’s exactly what Blue Tokai has done—turning everyday coffee drinkers into conscious consumers and casual café-goers into coffee enthusiasts.

As India continues to embrace the third wave of coffee, Blue Tokai stands at the forefront, leading the charge—one cup at a time.

Strengthening Relationships Across the Supply Chain

Blue Tokai’s success isn’t solely due to its product—it’s also about how it manages relationships.

In India, about 90% of coffee farmers are smallholders with less than 10 hectares of land. Traditionally, these farmers sold their beans to middlemen, who then exported the coffee, often leaving farmers with minimal profits and little recognition.

Blue Tokai changed that dynamic.

By cutting out middlemen and sourcing directly from farmers, Blue Tokai ensured that growers received fair compensation and greater visibility. By including the farm’s name on each pack, consumers could trace their coffee’s journey and even learn about the specific growing conditions that influenced its flavor.

This transparency appealed particularly to younger consumers—primarily those between 27 and 35 years old—who often seek brands aligned with ethical practices and sustainability.

But Blue Tokai didn’t stop there. Understanding that specialty coffee can feel intimidating to newcomers, they worked to demystify it. They simplified brewing methods, even encouraging the use of chai chani (traditional tea strainers) for filtering coffee—a brilliant workaround in a market hesitant to invest in costly coffee equipment.

This led to the rise of "Chani Brew", which became a popular way for Indian consumers to make coffee at home. They also introduced easy-pour sachets, eliminating the need for grinders or filters.

A Measured Approach to Expansion

Unlike many brands that aggressively expand their physical presence, Blue Tokai adopted a calculated, omnichannel strategy. Their growth was measured, focusing primarily on Tier 1 cities, where the demand for premium coffee was stronger.

While its online direct-to-consumer (D2C) platform ensured nationwide accessibility, its select cafes served as brand touchpoints. These outlets weren’t just places to grab coffee—they were spaces where customers could learn about brewing methods, attend coffee tastings, and deepen their connection with the brand.

Blue Tokai’s cafes currently contribute about 66% of the company’s revenue, and plans are underway to expand by adding 80 new stores annually. However, expansion isn’t their sole focus.

Another often-overlooked aspect of their growth is their B2B partnerships. Blue Tokai supplies coffee to offices, hotels, and other hospitality businesses. This channel contributes to nearly 50% of its non-café revenue, showcasing how strategic partnerships have played a significant role in scaling the brand.

Lessons from Blue Tokai’s Journey

• Find gaps in the market, especially in areas you’re passionate about, and design tailored solutions. Passion drives persistence.

• Transparency builds trust. Whether it’s with suppliers or customers, people value honesty and fair practices.

• Simplicity is a superpower. Breaking down complex products into easy-to-use formats expands your customer base.

• Brands that align with their audience’s values build loyalty and long-term growth. Ethical practices aren’t just good morals—they’re good business.

• Smart growth beats fast growth. Scaling a business requires strategy, not just speed.

• The modern consumer doesn’t just buy products—they buy experiences. Focus on making the customer feel involved and empowered.

• Innovation isn’t about radical ideas—it’s about thoughtful tweaks that improve the customer journey. Always listen to consumer feedback and adapt.

Explore more about Matt & Namrata

Looking ahead, Blue Tokai plans to expand both domestically and internationally while maintaining its core values. Their focus remains on preserving quality, strengthening farmer partnerships, and continuing to innovate within the coffee space.

A Story Worth Reading

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