Indian tea chain Chai Sutta Bar (CSB) has ventured into the premium café market with the launch of its new brand Kaffee-La, the Economic Times has reported.

CSB opened the first Kaffee-La outlet in Indore in the state of Madhya Pradesh.

Occupying 4,500ft², the outlet offers a range of premium teas and coffees. The move signifies CSB’s expansion into a higher-end market segment.

The company is adopting a franchise model for Kaffee-La’s expansion, mirroring the strategy of its successful CSB format.

Co-founder Anand Nayak told ETRetail that discussions are underway to open further outlets in the cities of Jalandhar and Delhi.

CSB has recently entered the fast-moving consumer goods sector with its private tea label Maatea.

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The brand is sold through the company’s website, e-commerce platforms and local grocery stores. Nayak anticipates a turnover of Rs500m ($5.9m) from Maatea by March 2025.

CSB has current revenues of Rs1.5bn and aims to double this figure by the end of the fiscal year 2025.

Nayak also outlined plans to increase the number of CSB outlets, focusing particularly on the South India market.

The brand is expanding internationally, with plans to open 20 new franchise stores in Canada in 2024, adding to its existing international presence in Nepal, Oman and Dubai.

Subko Coffee, a competitor in the speciality coffee and cocoa market, recently raised $10m in Series B funding at a valuation of $34m.

The investment round included contributions from NKSquared, backed by Zerodha co-founders and existing investors.

In March 2024 Blue Tokai Coffee Roasters marked a milestone by opening its 100th café in Kolkata, West Bengal, offering a curated selection of premium beverages in the Ballygunge neighbourhood.