This coffee company is valued at ₹650 crores and is bringing a coffee revolution in India. After Starbucks, if there’s a brand that has created a cult among coffee lovers in India, it’s Blue Tokai. They make more than ₹130 crores in annual revenue and are disrupting India’s massive ₹4,000 crore coffee industry.
The Global Love for Coffee
Before we understand what’s working for Blue Tokai, it’s important to see just how much the world loves coffee—and the stats are pretty mind-blowing.
Coffee is the second most consumed beverage in the world after water. It’s one of the top 10 traded commodities globally, alongside crude oil, gold, and copper.
In the Asian Arab culture, there was once only one reason a woman could divorce her husband: if he didn’t love coffee enough. That’s how crazy people are for coffee.
The Three Waves of Coffee
To understand how Blue Tokai pioneered the specialty coffee view in India, it’s crucial to know the three waves of coffee that have shaped how we drink it today:
First Wave: Commoditization of Coffee
This began in the 1800s. Brands didn’t matter because coffee was commoditized, and people were only just discovering caffeine’s kick. Instant packaged coffee emerged during this time.
Second Wave: Experience Becomes Central
About 170 years later, giants like Starbucks transformed the coffee culture by enhancing the offline experience. Frappuccinos and cafes became mainstream.
Third Wave: Specialty Coffee and Selectivity
This is where coffee lovers became highly selective. They cared about the origin of beans, roasting methods, and flavor profiles.
Specialty coffee, by the way, refers to coffee that scores 80+ points on a 100 scale by the Specialty Coffee Association of America (SCAA).
India’s Delayed Adoption of Coffee Waves
While the world embraced the third wave, India lagged. In 2011, India was still in the second wave—the cafe era.
Coffee Consumption at Home
Dominated by instant coffee brands like BRU and Nescafé, these still control over 70% of the market.
Coffee Consumption Outside (Cafes)
Café Coffee Day (CCD) was India’s largest coffee chain with 50% market share and over 1,200 outlets—4x that of Barista, the second-largest.
Starbucks entered in 2012 with Tata and brought in the premium cafe culture—but still, specialty coffee was missing.
Enter Blue Tokai: A Coffee Revolution Begins
Matt, the founder of Blue Tokai, came to India from the US in 2011 for work. Born and raised in the US, a good cup of coffee was non-negotiable for him.
Disappointed by India’s coffee scene, Matt left his job and co-founded Blue Tokai with his wife Namrata.
What started as a home roastery in Delhi is now a chain of 100+ outlets across India.
Their guiding principle:
If you love something as a consumer and it’s missing in the market—create it.
1. Insane Product Depth
Matt, a true coffee nerd, had high standards. He focused only on 100% pure Arabica beans, known for superior flavor.
Fresh Roasting Philosophy
Blue Tokai delivered freshly roasted coffee to customers’ doorsteps—something no one else did. Roasting happens only after an order is placed to ensure it’s consumed within the critical 4-week window.
Sourcing from Indian Farmers
They sought out farmers with the right conditions—altitude, climate, and cultivation—to ensure high-quality beans. Instead of commoditized coffee, they embraced specialty coffee—something global giants avoid due to its complexity.
India, the 8th largest coffee producer in the world, exports 70% of its coffee. Blue Tokai changed that by forming direct relationships with farmers in Karnataka, Kerala, and Tamil Nadu.
Their pitch to farmers:
- Better rates than exporters
- Add estate names to packaging
- Training on cultivating premium beans
- Long-term partnerships, not transactions
2. Building Relationships: With Farmers and Customers
Blue Tokai’s obsession with relationships stands out. Their transparency and giving-back model won them a cult-like following.
Empowering Small Farmers
In India, 90% of coffee farmers are smallholders with less than 10 hectares of land. Usually, they sell to traders with no idea who the end consumer is.
Blue Tokai solved this by:
- Printing estate names on every pack
- Giving farmers exposure and branding
- Creating a loop for future partnerships
Educating Customers
Blue Tokai invested heavily in consumer education, teaching them how to appreciate and brew specialty coffee. Their website is rich in info on brewing, flavor profiles, and bean types.
They lowered entry barriers by:
- Promoting chai channi (strainers) as brewing tools
- Launching Easy Pour coffee—no equipment needed
3. Smart Expansion Strategy
Despite their success, Blue Tokai isn’t opening stores everywhere.
Tier-1 Focus
They positioned themselves as a premium brand, focusing only on Tier-1 cities. Their goal? Build brand recall and customer retention without mass expansion.
Cafes as Experience Centers
Though rare, their cafes are strategic. They drive 66% of revenue and serve as both:
- Customer acquisition centers
- Retention tools for existing customers
B2B Growth
They also serve corporate clients who want good coffee for employees or visitors. This B2B channel contributes to 50% of their non-café coffee revenue.
Conclusion
From a humble roastery in Delhi to a ₹650 crore valuation, Blue Tokai’s journey is nothing short of inspiring. By cracking product quality, relationship building, and smart expansion—they’ve disrupted India’s coffee scene and defined what specialty coffee means to a new generation of Indian consumers.
FAQs
Q1. What makes Blue Tokai different from other coffee brands in India?
Blue Tokai focuses on specialty coffee, freshly roasted beans, and transparent sourcing directly from Indian farmers—unlike commoditized brands.
Q2. Where does Blue Tokai source its coffee from?
They source beans from farms in Karnataka, Kerala, and Tamil Nadu, ensuring high-quality cherries grown under optimal conditions.
Q3. What is specialty coffee?
Specialty coffee scores 80+ points on a 100-point scale by the Specialty Coffee Association of America (SCAA), emphasizing quality, traceability, and flavor.
Q4. How does Blue Tokai ensure coffee freshness?
They roast beans after receiving the customer’s order and recommend consuming the coffee within four weeks for the best experience.
Q5. Can I brew Blue Tokai coffee without special equipment?
Yes. They popularized using chai channi and also offer Easy Pour products that don’t require any equipment.
