Café Coffee Day (CCD), a leading coffee chain based in Bengaluru, reported a 10% increase in net revenue for the fiscal year ending March 31, 2024, reaching ₹1,013 crore ($120.6 million). Despite this positive revenue growth, the company continues to close stores as part of its strategy to manage significant debt.
CCD’s annual revenue remains below the ₹1,653 crore ($197 million) recorded in 2019, a peak year for the chain. The company’s net debt has decreased to ₹881 crore ($105 million) from ₹1,524 crore ($181.5 million) the previous year, reflecting efforts to stabilize its financial position.
At its height in 2019, CCD operated 1,752 outlets across 243 Indian cities. However, following a debt crisis of ₹7,000 crore ($833.6 million) and the tragic death of its founder V.G. Siddhartha in July 2019, the chain began closing numerous locations. Over the past year, CCD shuttered 19 more stores, leaving it with 450 operational sites. This number is surpassed by competitors such as Tata Starbucks and Barista, which operate 444 and 420 stores, respectively.
Since December 2020, CCD has been under the leadership of Siddhartha’s wife, Malavika Hegde, who is credited with significantly reducing the company’s debt. While the rate of store closures has slowed in recent years, CCD has expanded its network of coffee vending machines, which grew 8% year-on-year to reach 52,581 units across India. These vending machines are primarily located in corporate offices, business hubs, and hotels.
Founded in 1996 by Karnataka-born entrepreneur V.G. Siddhartha, CCD was a pioneer in India’s coffee and café culture. Known for its tagline “a lot can happen over coffee,” CCD was one of the first operators to offer espresso-based beverages in a third-place environment at scale.
Today, CCD faces increasing competition from both international and domestic coffee chains, many of which are attracting substantial investment to expand their presence in India’s rapidly growing food and beverage market.
In September 2023, Bengaluru-based Third Wave Coffee secured $35 million in a private equity round led by Creaegis. The following month, abCoffee, a small-format operator, raised $2 million in seed funding to advance its quick-service concept, followed by an additional $3.4 million in March 2024 to support its 65-store expansion.
Additionally, Indian specialty coffee roaster and café chain Blue Tokai Coffee Roasters raised $35 million in a September 2024 Series C funding round led by Brussels-based venture capital firm Verlinvest. This investment follows a $30 million raise less than two years earlier, aimed at expanding its store footprint and enhancing its B2B operations.