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Chai Sutta Bar — A Tea Chain That Started With ₹3 Lakh and Grew Past 650 Stores

2026.03.26

Article summary

Chai Sutta Bar (CSB) is a chai chain founded in June 2016 in Indore, Madhya Pradesh. Its founders were Anubhav Dubey and Anand Nayak, later joined by Rahul Patidar. It opened its first store with an initial investment of ₹3 lakh (1 lakh = 100,000 rupees; about ¥510,000), and expanded without bringing in any outside funding, using only the FOFO (franchise-owned, franchise-operated) model. Its signature feature is serving chai in kulhads (unglazed clay cups); their visual distinctiveness in photos has driven organic spread on social media, keeping advertising costs down. The company says it has grown to more than 650 stores including Nepal, the UAE, and Canada, though all store counts are figures the company itself has published. Because the initial investment per store is small enough for franchisees to fund themselves, it was able to grow its store count without bringing in outside capital.

This article is based on what we could verify As of September 19, 2026 This page is compiled from the disclosures and news reports of each company that could be confirmed as of that date. Amounts in the text follow common Indian notation, with ₹1 crore (1 crore = 10 million rupees) written as 10 million rupees, and the yen figures are rough calculations at around 1.7 yen to the rupee. Store counts, funding amounts, and results at Indian companies change over short periods, so please check the latest information in primary sources such as each company's official announcements when making business decisions.

Chai Sutta Bar is a chain that serves chai in kulhads (unglazed clay cups). Taking in no outside funding at all, it has grown through franchising alone to the more than 650 stores the company reports.

Company profile

Item	Details
Legal name	Chai Sutta Bar (CSB)
Year founded	June 2016
Headquarters	Indore, Madhya Pradesh
Founder	Anubhav Dubey and Anand Nayak (later joined by Rahul Patidar)
Initial investment	₹3 lakh (300,000 rupees; about ¥510,000)
Number of stores	More than 650 stores as published by the company (including Nepal, the UAE, and Canada)
Funding	None (bootstrapped)

The unglazed clay cup doubles as advertising

A kulhad is a disposable, unglazed clay cup. It has long been used at places like Indian railway stations, and after drinking, it's broken and returned to the earth. It costs more than paper or plastic cups, but the earthy aroma it imparts changes the flavor of the chai.

Chai Sutta Bar used this cup at every store. It's recognizable in photos, distinct from other shops, and easy to spread on social media. It functioned as a way to build awareness without spending on advertising, and it can also be framed as an environmentally conscious choice.

Anubhav Dubey and Anand Nayak opened the first store in Indore in 2016 with an initial investment of ₹3 lakh. They chose a location across from a women's hostel, designing it as a place for young people to hang out.

Why it could grow its store count without outside funding

The company has grown through FOFO (Franchise Owned, Franchise Operated). Franchisees fund and run the stores themselves, while headquarters provides the brand, supply, and operating format. Because the financial burden on headquarters is small, it can increase its store count without bringing in outside capital.

This model works because the initial investment per store is small. A chai shop needs only simple kitchen equipment and can get by with few seats. It stays within an amount a franchisee can fund on their own.

The company says it has more than 650 stores, including in Nepal, the UAE, and Canada. However, all store counts are figures the company has published itself, with no third-party verification. In franchise-driven chains, stores open and close at the same time, so published figures can diverge from actual numbers.

Points for Japanese companies

For a format built on opening many small stores in India, this company's approach can be followed directly. What matters is keeping the investment per store at a level franchisees can fund themselves. Japanese chains tend to have a higher figure than this, and bringing that as-is into India means franchise applicants won't come forward.

The mainstays are the various chais served in kulhads, from masala chai, cardamom chai, and ginger chai to items such as chocolate chai. Besides chai, the stores carry Maggi (instant noodles), sandwiches, and snacks, and are put together as places where young people can sit for a long time.