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Chaayos reduced its net loss by 50.59% to Rs 54 Crore, reports EBITDA profitable in FY24
Category: Business News, Posted on: 29/12/2024 , Posted By: Ishika Agarwal
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Founded in 2012 by Raghav Verma and Nitin Saluja, Chaayos is a cafe that offers beverages and quick bites through various outlets in the country. It also sells various premix teas via its website and other marketplaces.

Delhi NCR-based tea-cafe chain Chaayos reduced its net loss by 50.59% to INR 54 Cr in the financial year ended March 2024 (FY24) from INR 109.3 Cr in FY23, as it cut its expenses and turned EBITDA profitable. Chaayos reduced its net loss by 50.59% to INR 54 Cr in the financial year ended March 2024 (FY24) from INR 109.3 Cr in FY23, as it cut its expenses and turned EBITDA profitable. However, the decline in loss came at the cost of subdued growth in its top line. Chaayos operating revenue rose a mere 4.89% to INR 248.6 Cr during the year under review from INR 237 Cr in FY23 including other income, total revenue grew 7% to INR 271.2 Cr in FY24 from INR 253.4 Cr in the previous fiscal year.  However, Chaayos posted a positive EBITDA of INR 28.3 Cr in FY24 as against an EBITDA loss of INR 22.1 Cr in FY23. EBITDA margin improved to 11% during the year from -9% in FY23. Chaayos managed to reduce its total expenditure by 3.69% to INR 352.2 Cr in FY24 from INR 365.7 Cr in the previous fiscal year. INR 81.5 Cr, employee expenses accounted for about 23% of Chaayos total expenses in FY24. The spending under the head grew 4.89% from INR 77.7 Cr in FY23. In a bid to cut its loss, the startup slashed its advertising and promotional expenses by 50.81% to INR 13.3 Cr in FY24 from INR 27.1 Cr in FY23.Chaayos spent INR 73.7 Cr under this head, down 12.4% from INR 84.1 Cr spent in FY23. Chaayos directly competes against the likes of Chai Point, Chai Sutta Bar, and MBA Chaiwala. Indirectly, it competes against coffee chains such as The Third Wave Coffee, Blue Tokai, and Starbucks.

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