Publications
Publications
- November 2023
- HBS Case Collection
Chai Point
By: Rembrand Koning, Daniel W. Elfenbein and Kanika Jain
Abstract
Chai Point was an Indian food and beverage company focused on chai. It started in 2010 as a retail store network but soon expanded to corporate offices by developing an IoT-enabled automatic tea and filter coffee machine. By 2023, Chai Point had 170 stores and 5000 machines nationwide. However, it was still a fraction of India’s vast tea market. With ambitions for greater scale, Chai Point launched a promising third vertical, MyChai Corner, to aggregate the unorganized chai market via a tech platform. MyChai Corner was in its pilot stage, but its expansion would require significant capital expenditure and an aggressive pricing strategy. How should ChaiPoint allocate its resources between its various verticals? Which vertical would help it achieve the maximum growth? How could the company create synergies between them?
Keywords
Entrepreneurship; Food; Resource Allocation; Vertical Integration; Expansion; Food and Beverage Industry; Technology Industry; Retail Industry; India
Citation
Koning, Rembrand, Daniel W. Elfenbein, and Kanika Jain. "Chai Point." Harvard Business School Case 724-418, November 2023.