Theka Coffee: A Fail for Shark Tank But A Success for Reliance

Theka Coffee: A Fail for Shark Tank But A Success for Reliance

Hello readers,

Welcome to the latest issue of Growth Matrix! Today, we delve into the inspiring journey of Theka Coffee, a brand that turned adversity into a growth opportunity after its appearance on Shark Tank India or I would rather be blunt and say, after its rejection on Shark Tank India.

Join me as I set my growth marketer curiosity free and dig deep to find HOW on earth Theka Coffee grew to over 800 outlets in more than 45 cities across India, reaching a valuation of Rs 120 crore—a remarkable transformation from the initial valuation they sought.

And before I begin, let me tell you something - Theka Coffee's journey was published in the case centre of IIM Ahmedabad as a CASE STUDY! I am out of words tbh.

Okay, enough of that jaw-drop and eye-pop thing. Let's get to business!

Founder's Background

Bhupinder Madan's entrepreneurial journey began at a young age, driven by a passion for innovation and success. From selling pamphlets in Ahmedabad to launching momo stalls and ‘Happy Hours’ cafes, his ventures were formative experiences in business and customer engagement.

The Origin of Theka Coffee

Bhupinder was savoring a beer at SOCIAL, he couldn't help but notice someone nearby with a coffee served in a soggy glass. It struck him as rather uninspiring. Here he was, holding something cool and refreshing, while the coffee drinker next to him had something quite ordinary. That moment sparked an idea: why not make coffee as cool and enjoyable as holding a beer?

In 2017, inspired by a gap in the market for affordable premium coffee, Bhupinder conceived Theka Coffee. The brand’s unique offering of freshly brewed 100% Arabica coffee in beer bottles at an accessible price point aimed to make high-quality coffee a part of everyday life for the middle class.

An Easy Ride? Well, Who Has It?

Theka Coffee initially flourished with multiple cafes but encountered challenges related to high operational costs and the unforeseen impacts of the COVID-19 pandemic. Despite having to close all 14 outlets, Bhupinder's determination saw him returning to basics, selling coffee from a cart in Ahmedabad.

Learning from previous setbacks, Bhupinder embraced a leaner model focusing on organic growth. By strategically placing carts in high-traffic areas, Theka Coffee began to thrive again. This approach not only revived the brand but also set it up for significant expansion.

Theka Coffee in Shark Tank India - The Turning Point

Founder Bhupinder Madan pitched for Rs 50 lakh in funding for 5% equity, only to walk away empty-handed despite impressing the sharks with his innovative product.

Although he didn’t secure funding, he definitely garnered lots of attention! Zenith Multi Trading, a company based in Dubai, stepped in to help Theka Coffee raise Rs 2.5 crore. This infusion of capital enabled Bhuvinder to scale his business and reach new heights. Starting from an annual revenue of Rs 30 lakhs during the show, they have now surpassed Rs 60 CRORE in annual recurring revenue.

That's not it! Both Microsoft and Reliance Retail approached him with offers to feature Theka Coffee products in their establishments—an endorsement that speaks volumes about the brand's potential and appeal.

What worked for Theka Coffee?

1. Lean Operational Model

Following setbacks from high operational costs and the pandemic, Theka Coffee adopted a leaner approach. By reverting to selling coffee from carts and focusing on organic growth, the brand minimized overheads and expanded strategically.

2. Franchise Model Expansion

Theka Coffee leveraged a franchise model to scale rapidly across India. This strategy not only increased brand presence but also empowered local entrepreneurs to thrive under Theka Coffee’s established umbrella.

3. Affordable Premium Coffee

Theka Coffee revolutionized the coffee market by offering freshly brewed 100% Arabica coffee at affordable prices. The concept of serving coffee in beer bottles added a unique twist, enhancing customer experience and making it a hit among millennials.

4. Diverse and Quirky Menu

With offerings like ‘Palang Tod’ and ‘Coffee ki Jawani’, Theka Coffee’s menu stands out for its innovative names and flavors. Each coffee variant is crafted to cater to diverse preferences, ensuring there’s always something new to try.

Well, as my English teacher said, "There's always room for improvement". Here's what I feel they can do better:

1. Website

Their website could benefit from integrating links to their social media accounts. This would make it easier for visitors to connect with them across different platforms, enhancing engagement and visibility.

2. Logo

Their current logo lacks the quirky charm that reflects their unique coffee offerings. Adding a touch of creativity and vibrancy could better align with their brand identity and attract more attention.

3. Engagement

To foster a stronger connection with their community, I suggest Theka Coffee focus on hosting interactive activities on social media. This could include live Q&A sessions with the founder, coffee-tasting events, or contests that encourage user-generated content. These initiatives not only boost engagement but also create a sense of belonging among their followers.

4. Design & Editing

Theka Coffee's designs effectively capture the creativity and quirkiness that define their brand. However, they could explore more dynamic elements to further elevate their visual appeal. Incorporating more animated graphics or interactive elements could enhance user engagement and reinforce their unique brand personality.

5. Content

Injecting humor into their captions and content would resonate well with their audience. By infusing light-hearted and witty tones into their posts, Theka Coffee can create a more relatable and enjoyable experience for their followers. This approach not only entertains but also reinforces their brand as approachable and fun-loving.

Wrapping Up!

While Theka Coffee has defied the odds and grown exponentially after its Shark Tank stint, its journey forward remains a challenge. Despite outperforming coffee giants like Starbucks on pricing, the brand faces the formidable task of matching its established prestige. Can Theka Coffee rise to this challenge and cement its place in the coffee culture?

Moreover, with new contenders like Sleepy Owl disrupting the market with innovative instant coffee solutions, Theka Coffee must continuously innovate and adapt. The dynamics of the coffee industry demand resilience and constant evolution.

As we ponder Theka Coffee's future, I will leave you with something to think about: Will Theka Coffee maintain its momentum and carve a lasting niche in the competitive coffee landscape? Can Theka Coffee compete with coffee giants like Starbucks?

I am all ears to your opinion. Drop a hi:

See you in the next issue!