Blue Tokai, a specialty coffee roaster and one of Starbucks Corp.'s NASDAQ:SBUX strongest competitors in India, appears to be positioning itself for a much larger role in the country's fast-growing cafe market. Parent Muhavra Enterprises, which operates 240 outlets across India, is targeting 800 stores by fiscal 2030, with co-founder and CEO Matt Chitharanjan saying the company plans to open about 120 stores in the current financial year. The expansion is expected to strengthen Blue Tokai's presence in major metros while pushing into newer cities such as Ahmedabad and Lucknow, reflecting management's view that India remains under-penetrated in branded cafes despite rising competition.
Starbucks, a global coffee chain operating in India through a joint venture with Tata Consumer Products, also appears to be moving aggressively, with plans to add up to 100 stores every year from its current network of more than 500. Blue Tokai also competes with Cafe Coffee Day, Barista, and Third Wave Coffee, suggesting that investors may view India's premium coffee market as increasingly crowded but still expanding. Research firm IMARC Group projects India's cafe market, valued at $425 million in 2025, to grow at an annual rate of 11.14% and reach $1.15 billion by 2034, supported by demand from affluent consumers, wider digital availability, and quick-service chains.
Blue Tokai expects revenue to rise more than 50% to 8 billion rupees, or $93.9 million, this financial year after a near sevenfold increase over the past four years. The company, backed by investors including Verlinvest, is also eyeing an initial public offering within the next five to seven years as a possible exit route for early investors, while it may raise another 1.5 billion rupees in the next few years before funding growth internally. Its first international store is set to open in Dubai next week, though investors may still watch risks around supply-chain disruption, higher coffee prices, employee costs, real estate expenses, and the company's target to turn profitable by March 2028.