Boba Bhai, a QSR brand renowned for its bubble tea and diverse food offerings, has secured INR 12.5 crore in seed funding. This investment round was spearheaded by Titan Capital, the venture fund led by the Snapdeal founders, along with support from Global Growth Capital UK.
The funding round also saw contributions from Arjun Vaidya, cofounder of V3 Ventures, Marsshot VC by the Razorpay founders, DeVC, Warm Up Ventures, Varun Alagh, cofounder of Mamaearth, and several others.
“We’re building the brand for today’s youth, who follow trends and crave new experiences. I’m confident that foreign cuisines, particularly Korean food, will find a significant market in India,” shared Dhruv Kohli, Founder of Boba Bhai.
Continue Exploring: From Ghee resurgence to K-Food craze: Godrej Food Trends Report 2024 spotlights culinary trends shaping India’s gastronomic landscape
Boba Bhai runs 25 outlets in cities such as Bengaluru, Delhi, Hyderabad, and Chennai, all of which are owned by the company.
Kohli mentioned that the fresh funds will facilitate their ambition to grow to 100 outlets within the upcoming 12 months. “Our strategy involves expanding into tier-1 cities within the next six months, followed by penetration into tier-2 and tier-3 cities.”
The company currently boasts an annual revenue run rate (ARR) of INR 24 crore, calculated based on its current performance, with an average monthly order volume of 50,000. Over the next 12 months, it aims to increase this to an ARR of INR 100 crore, as stated by him.
Nearly 70% of Boba Bhai’s orders originate from the company website and online platforms like Zomato, Swiggy, and ONDC, while the remaining 30% are from its physical outlets.
Kohli mentioned that the company plans to use the funds to incorporate cutting-edge technologies into its offerings and to expand its workforce.
The company employs around 200 people, including kitchen staff.
According to the company, Boba Bhai holds a significant market share of 90% in the bubble tea industry in cities like Bengaluru.
This funding round is in line with a larger trend wherein many homegrown food and beverage brands are drawing investments from early-stage institutional investors and affluent individuals.
Continue Exploring: Investor appetite grows for homegrown food and beverage startups as demand skyrockets
Examples include Haryana-based Pizza Wings, which secured $4 million in funding from Gruhas, a venture capital fund by Zerodha cofounder Nikhil Kamath, along with investments from angel investors such as Sujeet Kumar, co-founder of Udaan. Additionally, Burger Singh’s pre-Series-B round was led by Turner Morrison Ltd, with participation from Homage Ventures LLP. AKU’s, backed by Burger Co, raised funds from Vikram Bakshi, former managing director of a McDonald’s joint venture operating the chain’s outlets in North and East India. Furthermore, Wow! Momo Foods raised INR 350 crore in January from Khazanah Nasional Berhad, Malaysia’s sovereign wealth fund.
Continue Exploring: Wow! Momo Foods secures INR 350 Crore funding led by Malaysia’s Khazanah Nasional Berhad, eyes aggressive expansion
Boba Bhai offers approximately 18 to 19 bubble tea flavors. In the coming weeks, it plans to introduce five to six new flavors and expand its dessert offerings.
Bipin Shah, a partner at Titan Capital, expressed, “The team’s dedication to customizing a variety of bubble teas to suit the diverse tastes and preferences of Indian consumers has rapidly propelled its popularity. We are delighted to collaborate with a brand that envisions establishing a significant food brand in India, backed by robust taste, demand, and efficient distribution.”
Continue Exploring: A-Listers Spice Up Their Portfolios with Bold Bets on India’s Booming F&B Startups
