Chai Point raises $20 million in Series C funding round
Mumbai, Apr 19 (PTI) Chai Point has raised USD 20 million in its third strategic funding round, led by private equity firm Paragon Partners.
All the existing investors, Eight Roads (Fidelitys India PE arm), Saama Capital and DSG, participated in this round, with some of them investing super pro rata, a company release said today.
Amuleek Singh Bijral, co-founder and chief executive officer, Chai Point said a substantial portion of the investment proceeds will go towards deepening the companys sales, marketing, and service operations for its automated hot beverage dispensing business, boxC.in. which is the next growth driver for the business.
"High quality tea and coffee is fundamental to our growth and we are going to expand and refine our underlying sourcing program, Garden to Glass. Also, we will enhance our food menu," he added.
The company currently sells about three lakh cups of chai a day across all its channels, stores, delivery, and dispensers, and is targeting five times the business in the next three years, according to the release.
Siddharth Parekh, co-founder and senior partner, Paragon Partners, will also be joining the board of the firm.
DCS Advisory India (earlier Signal Hill Capital) was the exclusive advisor to the company for this fund raise.
With the current fund infusion, the company has so far raised USD 34 million, according to the release.
It had in August last year raised USD 2.9 million in a bridge round of funding led by Eight Roads Ventures. Earlier in 2015, the company had mopped up USD 10 million in Series B round of funding led by Eight Roads. PTI DSK SS SS