Start-up firm Chai Break to raise $1 million from venture capitalists
It has 11 outlets at present in Kolkata, Durgapur and Bhuvaneswar.
The chain, valued at Rs 50 crore, is looking to dilute 10% of promoters share for raising the fund, Anirudh Poddar, one of the two directors, told ET.
Prior to this equity infusion Poddar held 50% while another director Aditya Ladsaria held 50%. They started the venture in 2011 with just about Rs 50000.
"We are planning to improve our infrastructure as well as planning to expand in tier 2 cities," Poddar said.
It has 11 outlets at present in Kolkata, Durgapur and Bhuvaneswar and it looks to open outlets in cities like Gangtok, Guwahati, Siliguri and Jamshedpur. It is planning to build a central kitchen in Kolkata as well.
Poddar said the investment towards setting up the central kitchen would be about Rs 80 lakh while it needs about Rs 50-60 lakh for an outlet.
It is also planning to test the franchise-owned company operating outlets in the future.