City-based F&B start-up Chai Break has received Rs 5 crore angel funding from Venture Catalysts of Mumbai, which would be used for expansion of the outlets of its chains, mostly in Tier-II cities.
Chai Break, founded by ALP Retail, is a bootstrapped start-up which presently has 11 outlets across Kolkata and Bhubaneswar, each with an annual turnover of Rs 1.5 crore.
Co-founder of Chai Break Anirudh Poddar told reporters here today that the company plans to open outlets in Tier-II cities like Patna and Ranchi.
"We plan to reach 10 more cities in the next 2-3 years with special focus on Tier-II locations and aiming at a turnover of Rs 50 crore," Poddar said.
The other co-founder Aditya Ladsaria said that a part of the proceeds of the funding would be utilised to set up a central kitchen at a cost of Rs 70-80 lakh, adding that their venture has been making profits since inception.
He said that so far, all the outlets are owned and operated by the company.
"Now, we want to follow the FOCO model (franchise owned and company operated)," he said.
Presently, the company employs 300 people, which is expected to go up to 1,000 post-expansion.There are also plans to set up outlets overseas in 7-8 years, Poddar said.