Introduction
Blue Tokai Coffee Roasters is among India’s top specialty coffee startups, with a reputation for revolutionizing the nation’s coffee culture by introducing freshly roasted, traceable, locally grown beans. Founded in 2013 by Matt Chitharanjan and Namrata Asthana, the brand launched the idea of third-wave coffee in India and has since become a household name amongst quality-demanding coffee enthusiasts.
Founders & Origin Story
Matt and Namrata, both finance and communication professionals respectively, were disheartened to see no good coffee being available in India despite the country being a major coffee producer. Matt and Namrata started roasting beans in their garage in Delhi and selling online to a small niche customer base. The title “Blue Tokai” comes from a South Indian term for the ‘peacock’s tail’—a reference to elegance and Indian heritage. Their goal was straightforward: bring specialty coffee to Indians and help local farmers.
Business Model & Operations
Blue Tokai has a multi-channel business model:
- D2C E-commerce: Online and app-based, they retail fresh-roasted coffee beans, pour-over filters, and equipment to customers all over India.
- Retail Cafés : They have established more than 70 cafés in cities such as Delhi, Mumbai, Bengaluru, and Hyderabad with a full café experience.
- B2B Supply : They provide roasted beans to other cafés, restaurants, and hotels for a consistent revenue stream.
- Subscription Model : Coffee enthusiasts can order monthly boxes according to their taste buds.
Growth & Revenue
Blue Tokai started as a small coffee roasting setup in 2013 and slowly built its name through word-of-mouth and the rise of café culture in Indian cities. Over time, the brand grew into one of India’s most loved specialty coffee chains. In 2023, it received a major boost by raising $30 million in funding from A91 Partners, followed by another $35 million in 2024 from Verlinvest. This helped them open more cafés, improve packaging, and invest in new products like cold brews and ready-to-drink coffee. Their revenue has shown strong growth—rising from ₹41 crore in 2021 to over ₹216 crore by 2024. Even though they’re spending more to expand, they’ve managed to reduce their losses. Now, with over 130 cafés across India, Blue Tokai is aiming to become a ₹1,000 crore company by 2027 and is steadily moving toward profitability.
Economic & Social Impact
1. Direct Farmer Engagement
Blue Tokai sources coffee directly from Indian estates like Chikmagalur and Coorg, eliminating middlemen and ensuring farmers are paid fair, transparent prices.
2. Traceability and Transparency
The company’s transparent sourcing model allows consumers to trace their coffee back to specific farms, building trust and promoting ethical consumption.
3. Support for Sustainable Farming
By working closely with estates focused on quality, Blue Tokai promotes sustainable, eco-friendly cultivation methods that preserve soil health and biodiversity.
4. Global Recognition for Indian Coffee
Blue Tokai played a key role in putting Indian specialty coffee on the global map, showcasing the quality and potential of Indian-grown beans internationally.
5. Employment Generation
The brand has created numerous jobs across roasting units, logistics, packaging, and retail cafés, especially supporting young professionals in the F&B sector.
6. Urban Café Culture and Skill Building
Through its expanding café network, Blue Tokai has fueled India’s growing urban café culture while also training and upskilling baristas and service staff .
Challenges
- Low Coffee Awareness in Smaller Cities: In Tier 2 and Tier 3 cities, people are still warming up to the idea of specialty coffee. This limited the company’s ability to expand offline in the early stages.
- High Costs: Running cafés in big cities comes with expensive rents and delivery logistics, which affect profit margins.
- COVID-19 Impact: Like many food and beverage brands, Blue Tokai took a hit during the pandemic. Lockdowns led to a sharp decline in café sales, pushing the brand to shift focus to online orders and home deliveries.
Future Plans
Looking ahead, Blue Tokai is focused on:
- Expanding into Smaller Cities: With awareness slowly growing, the brand plans to open more cafés in Tier 2 markets.
- Global Expansion: They aim to take Indian specialty coffee to international shelves.
- Eco-Friendly Packaging: The brand is making sustainability a priority with greener, recyclable packaging.
- Product Innovation: They’re developing more ready-to-drink formats like cold brews and bottled beverages to meet changing consumer demands.
Conclusion
Blue Tokai has not only established a coffee company, it has fueled a cultural transformation. From a small garage in Delhi to a national brand, their success showcases the strength of passion, quality, and narrative. By closing the gap between Indian coffee farmers and global quality standards, Blue Tokai is a benchmark in India’s contemporary food and beverage ecosystem.
