Specialty coffee brand Blue Tokai, supported by investors such as A91 Partners and Deepika Padukone's Ka Enterprises, experienced a significant on-year surge in operating revenue, surpassing 70% and reaching Rs 127 crore in FY23.
In the fiscal year ending March 2023, the Gurugram-based company witnessed a 3.5-fold increase in its net loss, amounting to Rs 43 crore.
This rise in losses can be attributed to the company's extensive expansion efforts in a competitive market, where it contends with venture-backed entities like Third Wave Coffee, as well as established giants such as Starbucks India and Cafe Coffee Day.
In FY23, Blue Tokai witnessed a significant surge in total expenses, escalating from Rs 90 crore in the preceding fiscal year to Rs 166 crore.
This notable increase primarily stems from elevated costs associated with raw materials, employee salaries, and rents, as indicated by regulatory filings obtained from Tofler.
Over the past twelve months, the company has inaugurated over 30 stores, bringing its current presence to approximately 92 outlets. Cafes contribute to nearly two-thirds of Blue Tokai's total revenue.
Blue Tokai functions across three segments: physical cafes, e-commerce and marketplace platforms, and business-to-business (B2B) services.
The company has a presence in both India and Japan, encompassing four roasteries and a network of brick-and-mortar establishments located in cities like Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Kolkata, Chandigarh, Mohali, and Pune. Additionally, it conducts periodic pop-ups in Tokyo.
In the fiscal year 2023, the company's raw material expenses amounted to Rs 50 crore, nearly doubling from the Rs 26 crore reported in FY22.
This increase aligns with the upward trend in input costs experienced by numerous companies in the food and beverage sector, attributed to prolonged high inflation rates.
In FY23, Blue Tokai observed a nearly twofold rise in employee benefit expenses, reaching Rs 43 crore compared to Rs 22 crore in the previous year.
Concurrently, rent costs also experienced a similar increase, climbing from Rs 9 crore in FY22 to Rs 17 crore in FY23.
In January of the previous year, Blue Tokai disclosed a $30 million fundraising round led by A91 Partners.
During that period, the company outlined its intention to incorporate 200 stores within a three-year span. With this fundraising activity, Blue Tokai's cumulative external capital raised amounted to $46 million.
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