Specialty coffee champion Blue Tokai will only go public in 2028 - here's why

Blue Tokai co-founder Shivam Shahi has revealed that the leading coffee chain plans to go public only by 2027-28, once it achieves a revenue milestone of ₹1,000 crore. Speaking at Startup Mahakumbh, Shahi told Fortune India that the brand expects to hit this target after surpassing the 350-store mark, signaling a strategic focus on scale before considering an IPO.

“In the long run, we want to be at least ₹1200 crore revenue brand, and with at least 10% EBITDA,” said Shahi.

As of March, Shahi shared that the company operates 150 stores across India, with a strong focus on Tier-1 cities such as Delhi, Mumbai, Bengaluru, and Pune. "The plan now is to add 100 stores every year," said Shahi, adding that the company aims to reach the 350-store mark by 2027.

For Blue Tokai, entering a new city is considered viable only when the co-founders are confident about opening at least five outlets there. "This is precisely why we don't intend to expand to cities like Lucknow or Jaipur," Shahi explained.

“The idea is we are not urgently expanding and going deeper into the existing cities. Where we operate. So, focus is more on Delhi, Bombay, Bangalore in terms of new cities will be opening Hyderabad and we are opening in Dehradun,” said Shahi.

He emphasised that the company does not pursue expansion unless it is assured of profitability—mere break-even is not enough for new market entries.

Blue Tokai Coffee Roasters, headquartered in Gurugram, is a leading Indian specialty coffee brand known for sourcing, roasting, and selling high-quality coffee beans with a vision to make great Indian coffee more accessible. Shahi shared that the company's older stores—those operational since before December—are currently operating at an EBITDA of 27%, while even the newer outlets opened post-December are delivering a healthy EBITDA of 20%.

Shahi noted that Blue Tokai has taken key lessons from the missteps of other major coffee brands, such as Starbucks, which—despite their international success—have faced challenges in navigating the Indian market. Yet, Shahi says Blue Tokai is not concerned about its competitors but about the reviews from its customers.