Boba Bhai Secures ₹12.5 Cr; Plans To Expand Into 100 Outlets Within 12 Months

Summary

Boba, a QSR brand specializing in bubble tea, has raised ₹12.5 crore in seed funding to expand to 100 outlets in the next 12 months. With an emphasis on Indianized flavors like Jamun Kalakata and Taro Lava, the brand caters to the growing demand for bubble tea among Gen Z in India. Offering customization options, including sugar-free drinks, Boba aims to capture a significant share of the rapidly growing bubble tea market, which is expanding at 14% annually. The company plans to achieve ₹100 crore in annual revenue and expand beyond tier 1 cities.

Takeaways

• 😀 Boba, a QSR brand specializing in bubble tea, has raised 12.5 CR Rupees in seed funding to expand into 100 outlets within the next 12 months.
• 😀 Bubble tea is gaining popularity in India, especially among Gen Z, driven by a broader trend of rising demand and growing social media presence.
• 😀 Boba is focusing on customizing bubble tea to Indian tastes, offering flavors such as Jamun Kalakata and Taro Lava, alongside classic options like cold coffee with bubbles.
• 😀 The brand offers customization options, including no-sugar variants, allowing customers to personalize their drinks both in-store and for deliveries.
• 😀 Founded in October 2023, Boba currently offers 18 to 19 bubble tea flavors and plans to introduce 5 to 6 new flavors and expand its dessert offerings.
• 😀 Boba has grown rapidly, processing over 50,000 monthly orders with a presence in 25 outlets across seven major cities including Delhi, Bangalore, and Mumbai.
• 😀 The brand is planning to expand beyond tier one cities and is already present in cities like Udaipur, with plans for over 100 outlets in the next 12 months.
• 😀 Boba's sales are equally divided between physical stores and delivery platforms, such as Swiggy and Zomato, accounting for 50% each.
• 😀 With an annual revenue run rate of 24 CR Rupees, Boba aims to reach 100 CR Rupees in the next 12 months, focusing on further growth and innovation.
• 😀 The company has secured 12.5 CR Rupees in seed funding from Snapdeal Founders, Titan Capital, and Global Growth Capital UK, with plans to raise 50 CR Rupees in its pre-series A round.

Q & A

What is the primary product offered by Boba?

Boba specializes in bubble tea, offering a variety of flavors including unique Indianized options like Jamun Kalakata and MAA Cold Coffee with bubbles.

How much has Boba raised in seed funding, and what are its expansion plans?

Boba has raised 12.5 CR Rupees in seed funding and plans to expand into 100 outlets within the next 12 months.

What makes Boba's bubble tea different from other brands in the market?

Boba focuses on Indianized flavors and caters to local preferences by offering drinks like Jamun Kalakata and Taro Lava, as well as no-sugar options.

What is Boba's target demographic?

Boba primarily targets Gen Z and Millennials, especially those influenced by Korean culture, who are driving the demand for bubble tea in India.

How many flavors does Boba currently offer, and are there any future plans for new offerings?

Boba currently offers 18 to 19 bubble tea flavors and plans to introduce 5 to 6 new flavors along with expanding its dessert offerings in the near future.

What is Boba's pricing strategy?

Boba is a mass-premium brand, with prices ranging from 129 to around 200 Rupees, making it accessible yet premium for its target market.

How is Boba performing in terms of orders and market presence?

Within 6 months of its inception, Boba is processing over 50,000 monthly orders and has 25 outlets across major cities, including Delhi, Mumbai, and Bangalore.

What percentage of Boba's sales come from online platforms?

50% of Boba's sales come from physical stores and its website, while the other 50% comes from third-party delivery platforms like Swiggy and Zomato.

How does Boba plan to use the seed funding they raised?

Boba plans to use its seed funding for research and development to introduce new flavors, enhance store operations through technology, and hire a strong team.

What is the growth rate of the bubble tea market in India, and what is Boba's market share target?

The bubble tea market in India is growing at 14% annually, and Boba aims to capture 75-80% of the market share in FY24 by tailoring its products to Indian tastes.