The Success Story Of MBA Chai Wala: How Did It Scale?

Success Story of MBA Chai Wala

Ever wondered how a small tea stall turned into a thriving business empire? Let’s dive into the success story of MBA Chai Wala, a journey led by Prafull Billore. Starting with just INR 8,000, he brewed more than just tea – he crafted a brand with a whopping turnover of INR 4 crores.

Success Story of MBA Chai Wala

 

The story goes beyond the chai cups; it’s about overcoming challenges, innovative strategies, and the entrepreneurial spirit that fueled the growth of MBA Chai Wala. 

Join me as we unravel the steps, hurdles, and unique tactics that propelled this small tea venture into a nationwide phenomenon with 50 bustling cafes.

(A) Overview: What is MBA Chai Wala?

MBA Chaiwala is a thriving tea brand founded by Prafull Billore. What started as a small roadside tea stall in Ahmedabad, Gujarat, has now evolved into a significant business venture with over 200 franchises across 100+ cities in India. 

Prafull Billore, also known as the “MBA Chaiwala,” embarked on this entrepreneurial journey after dropping out of an MBA program. His unique approach, including creative marketing strategies like offering “free tea for singles” on Valentine’s Day, garnered attention and contributed to the brand’s success. 

Today, MBA Chaiwala is not just about tea; it symbolises the spirit of a successful entrepreneurial story.

Before diving further into the success story of MBA Chai Wala, let’s have a brief overview of it-

Key AspectsDetails
Name of the StartupMBA Chai Wala
Full form of MBAMr. Billore Ahmedabad
FounderPrafull Billore
Year of Establishment2017
Initial InvestmentRs.8,000
Total TurnoverRs.4 Crores
Daily IncomeRs.1.5 Lakh
Number of Outlets200+
Franchise CostRs.14,30,000 (KIOSK);
Rs.22,60,000 (Dine-In)
Net Worth Rs.20 crore
MBA Chai Wala: A Brief Overview

The daily income of MBA Chaiwala is expected to be Rs. 1.5 Lakh through the royalty & other profits throughout the 200+ MBA Chaiwala outlets.

(B) Background of the Success Story of MBA Chai Wala

Once upon a time in Ahmedabad, Gujarat, there lived a young man named Prafull Billore. His dreams were big, but his journey started small. Pursuing an MBA, he faced setbacks in exams and found himself working at McDonald’s. Despite the hurdles, his passion for entrepreneurship flickered.

YearTimeline of Events
2017Prafull starts a roadside tea stall with INR 8,000 investment.
2019MBA Chaiwala expands to 23 branches.
2020Prafull’s revenue reaches INR 4-5 crore annually. 
2022MBA Chaiwala boasts 200+ franchises across 100+ cities.
Background: MBA Chai Wala Success story

The success story of MBA Chai Wala goes like this-

In the city’s hustle and bustle, Prafull Billore, known as the “MBA Chaiwala,” dared to dream beyond textbooks. His love for chai was minimal, but his determination was boundless. With just INR 8,000 and a humble tea stall on SG Highway, he embarked on an unconventional journey.

The aroma of his tea and unique customer engagement, including cricket matches and heartfelt messages, spread like wildfire. Challenges arose – envious competitors, expulsion from his initial spot – but Prafull, undeterred, sought new opportunities.

His pivotal move came with the creation of “MBA Chaiwala,” not an academic degree but a title proclaiming “Mr. Billore Ahmedabad.” The brand grew, adding cafes across India, and Prafull’s turnover reached a staggering INR 4-5 crore per year.

Engaging millions on social media, Prafull became a motivational speaker and founded the MBA Chaiwala Academy. Yet, his success isn’t without scrutiny, as some franchisees claim financial mismanagement.

In the end, MBA Chaiwala stands as a testament to one man’s audacity to dream, turning a modest tea stall into a flourishing business, one chai at a time.

(C) Detailed Success Story of MBA Chai Wala

As you have read above, in the bustling streets of Ahmedabad, Gujarat, where the fragrance of chai wafts through the air, the tale of Prafull Billore, famously known as the “MBA Chaiwala,” unfolds. His journey is not just about brewing tea; it’s a testament to audacious dreams and unwavering determination.

(C.1) Who is Prafull Billore?

Prafull Billore (Success Story of MBA Chai Wala)

Prafull Billore, born in Dhar, Madhya Pradesh, in 1996, had modest beginnings. His parents, Sohan Billore and his wife, wished for him to complete his MBA and secure a high-paying job, a conventional aspiration for many Indian families. However, Prafull’s path took an unexpected turn.

Attempting the Common Admission Test (CAT) for admission to the prestigious Indian Institute of Management (IIM) at Ahmedabad, Prafull faced failure three times. Uninterested and disheartened, he decided to step away from formal education. His parents, still supportive, watched as Prafull sought to explore life beyond textbooks.

Working at McDonald’s in Ahmedabad, earning Rs. 300 a day, Prafull experienced the reality of the corporate world. However, he yearned for more. Despite rising through the ranks, from housekeeping to the cashier, the desire to be an entrepreneur gnawed at him.

(C.2) The Tea Entrepreneurial Spirit Emerges

MBA Chai Wala outlet

With dreams of becoming a “big businessman,” Prafull faced a financial hurdle – the high initial investment needed for most business ventures. Undeterred, he decided to venture into the business of chai, a beverage deeply ingrained in Indian culture.

Calling his father, he borrowed Rs. 8,000 under the guise of another purpose and invested it in a roadside tea stall. Not a tea enthusiast himself and clueless about tea preparation, Prafull faced initial setbacks. His first day saw no sales as he grappled with proportions, adding too much sugar to the tea.

But adversity became a stepping stone. Prafull, armed with resilience, transformed his tea-selling endeavour into a unique experience. Fluent in English, he engaged customers in conversation, serving tea in earthenware cups with toast and tissues. The unconventional approach set him apart, drawing attention in the competitive landscape of roadside tea vendors.

(C.3) Overcoming the Challenges while Expanding

Success, however, invited envy. Other tea vendors, threatened by Prafull’s growing popularity, formed a union and expelled him from the area. We will look at the challenges in detail in the upcoming sections.

Undeterred, Prafull, with permission from a nearby hospital owner, relocated and reopened his stall, naming it MBA Chaiwala, a play on his identity as “Mr. Billore Ahmedabad.”

To attract a diverse clientele, Prafull added a unique touch to his stall – a corner for job seekers to leave their details. His innovative engagement strategies, from organising cricket matches to creating message boards, turned his tea stall into a community hub.

Two years of operating from Ahmedabad laid the foundation for expansion. Prafull, now more confident, opened his first franchisee café in Bhopal. MBA Chaiwala evolved from a humble tea stall to a brand with over 50 franchisee outlets, offering not just tea but an experience.

(C.4) Expansion of the Brand

MBA Chai Wala (Franchise)

MBA Chai Wala, with its goal of making chai accessible to the masses, faced financial constraints typical of startups. Prafull, embracing the challenges, aimed to grow the brand to 200 outlets by the end of the year. His vision extended beyond financial success; he aspired to create a millionaire from every small town through his franchisee model.

As the brand gained momentum, Prafull Billore expanded his role. A strong presence on social media, particularly YouTube, he shared his entrepreneurial journey and became a motivational speaker. The MBA Chaiwala Academy was born, imparting entrepreneurial knowledge to aspiring business enthusiasts.

(C.5) Controversies and Scrutiny

However, success seldom comes without scrutiny. Allegations arose against Prafull as some franchisees claimed financial mismanagement. Promising a minimum income of INR 10,000 per day per store, Prafull faced challenges in delivering the promised results, leading to discontent among franchise owners.

(C.6) Sum-Up

The success story of MBA Chaiwala is more than a tale of selling tea; it’s an odyssey of turning challenges into opportunities. Prafull Billore, with a humble tea stall, brewed not just chai but a brand that resonates across India. From the streets of Ahmedabad to over 50 franchisee outlets, the journey continues, marked by resilience, innovation, and a dream to make every Indian sip his chai.

(D) Challenges Faced by MBA Chai Wala

By now, you have seen only the golden side of the story. On the flip side, you will see numerous heart-wrenching challenges of the success story of MBA Chai Wala.

Go through the following table and you will find out soon-

YearTimeline of Struggles of MBA Chai Wala
2017Prafull Billore fails the CAT exam three times, abandoning his dream of an MBA at IIM Ahmedabad. Starts working at McDonald’s.
2017Facing financial constraints, decides to start a roadside tea stall with an initial investment of INR 8,000.
2017Initial setback as he fails to sell a single cup of tea on the first day, struggling with proportions.
2017Develops innovative strategies to attract customers, including engaging in conversations, serving tea in earthen pots, and introducing toast with tea.
2017Expelled from the initial location by other tea vendors forming a union. Relocates and reopens near a hospital, naming the stall MBA Chaiwala.
2019Opens the first franchisee café in Bhopal after two years of operating from Ahmedabad
2020MBA Chaiwala brand expands to over 50 franchisee outlets, facing financial constraints typical of startups
2022Allegations of financial mismanagement emerge as some franchisees claim discrepancies in promised minimum income.
Challenges faced by MBA Chai Wala

This timeline encapsulates the struggles and triumphs of MBA Chaiwala, illustrating Prafull Billore’s journey from setbacks to establishing a brand with over 50 franchisee outlets.

Note: Do you know various tea startups in India are going through a purple patch? For detailed information, visit the article “Which Chai Startup is leading the race in India?

(E) Massive Turnover: How did it Scale?

The success story of MBA Chai Wala is the result of a well-rounded approach, combining innovative marketing, customer engagement, a scalable franchise model, and a commitment to continuous learning and adaptation.

The following table describes all the strategies that helped MBA Chai Wala to scale-up successfully-

StrategiesKey Points
Innovative Tea OfferingsDiverse tea flavours are introduced, such as Tulsi Chai, Masala Chai, Adarak Chai. 
Strategic Marketing TacticsUtilized social media platforms for extensive online presence.
Viral marketing with “free tea for singles” on Valentine’s Day garnered attention.  
Customer Engagement InitiativesOrganized activities like cricket matches, ludo games, and a whiteboard for leaving messages.
Unique tea-serving methods for customer attraction. 
Franchise Expansion ModelEstablished a successful franchise system across 23 states with over 50 outlets.
Simplified franchise application process through online platforms. 
Diversification of MenuExpanded offerings to include snacks and coffee.
Diversification contributed to increased revenue and customer satisfaction.
Innovative Business ModelIntroduced the “chai-preneurs” concept without the need for an MBA degree.
Streamlined franchise application process online.           
Social Media and BrandingMaintained a strong online presence with millions of followers across platforms.
Active participation in motivational speaking events. 
Vision for GrowthAmbitious plans to open 100 MBA Chaiwala outlets by next year.
Focus on a broader national presence, emphasizing serving the masses. 
MBA Chai Wala AcademyEstablished to share entrepreneurial knowledge.
Covers holistic development areas including self-development, mental growth, and marketing.
Philanthropic InitiativesUtilised brand fame to organise events supporting various causes.
Examples include upliftment of the underprivileged and Kerala Flood Relief Fund.
Motivational Speaking EngagementsInvited to speak at prestigious institutions like IIMs, IITs, TEDx events.
Utilised speaking engagements to inspire and motivate the youth. 
Continuous Learning and AdaptationDemonstrated adaptability by shifting from a roadside tea stall to a scalable franchise model.
Learned from setbacks, continually engaging with customers. 
Working and Marketing Strategies of MBA Chai Wala

In the following sections, we will deep dive into the income and franchise info of MBA Chai Wala

(F) MBA Chai Wala Income

First of all, let’s go through the revenue breakdown-

Key MetricsFinancial Snapshots
Annual TurnoverRs.4 Crore
Number of Outlets (2022)50
Monthly Revenue per OutletRs.66,667
Daily Revenue per OutletRs.2,222
Franchise CostVaries
(Alleged Rs.30 Lakh)
MBA Chai Wala Income

MBA Chai Wala celebrated a noteworthy annual turnover of ₹4 Crore in 2022, reflecting the brand’s robust performance and market acceptance. With a strategic presence in 50 outlets across 23 states, MBA Chai Wala has successfully woven itself into the fabric of diverse markets, contributing to its widespread popularity. The monthly revenue per outlet, standing at ₹66,667, signifies a consistent and healthy income stream generated by each franchise.

Breaking down the daily revenue, each outlet brings in ₹2,222, a testament to the brand’s success in the competitive tea market. The franchise cost, reportedly ranging from ₹10 Lakh to ₹30 Lakh, represents the investment made by aspiring franchisees, encompassing promised returns and business support.

Note: Despite financial success, reported concerns from franchisees about achieving promised incomes underscore the importance of thorough due diligence for potential investors. Business success stories often come with complexities, and a cautious approach is advisable before entering into such arrangements.

(G) MBA Chai Wala Franchise

Here comes the most anticipated part of the write-up i.e. MBA Chai Wala Franchise. 

The franchise costs and requirements depend on the type of business model you prefer for MBA Chai Wala. You can opt for either Kiosk model or Dine-in model. 

(Note: Kiosk refers to a small, temporary, stand-alone booth. They are usually placed in high traffic areas for marketing and catching the eyes of folks.)

Let’s look at the franchise model and investments required-

Business ModelKIOSKDine-in
Space in Sq. Ft.150400
Interior CostRs.3.90 lakhRs.8 lakh
Equipment CostRs.4.20 lakhRs.6.50 lakh
Franchise FeeRs.5 lakhRs.6.50 lakh
Initial Stock CostRs.1.20 lakhRs.1.60 lakh
Total InvestmentRs.14.3 lakhRs.22.6 lakh
Royalty4%4%
Rent AnalysisRs.30kRs.5 lakh
Miscellaneous ExpensesR&D,
Opening Expenses
R&D,
Opening Expenses
Licence TypeFSSAI,
TRADE LICENCE,
PPL LICENCE
FSSAI,
TRADE LICENCE,
PPL LICENCE
Licences CostAs per the law of the stateAs per the law of the state
MBA Chai Wala Franchise

Now, let’s look at the agreement and training of MBA Chai Wala franchise

Training Module
Days10 Days
Location
(HO/Franchisee Place)
Franchise Place
Offline/OnlineOffline
TimingsAny time in the year
Automation
Kitchen Automation
(mini/semi/fully)
Semi
Electronic Auto Guide Recipe
(Yes/No)
Yes
Vendor Automation
(Manual Process/System Process)
System Process
Raw MaterialsOnly core items provided
by the brand
Agreement & Training of MBA Chai Wala

We hope this information will help you to gain insights on the MBA Chai Wala franchise.

(H) Wrap-Up

In conclusion, the success story of MBA Chai Wala embodies the journey of determination, innovation, and resilience. Prafull Billore’s entrepreneurial spirit turned a small roadside tea stall into a thriving business, challenging conventions and inspiring aspiring entrepreneurs. 

And how was this possible?

Through strategic marketing, unique offerings, and community engagement, MBA Chai Wala scaled its presence across India. The brand’s commitment to quality, coupled with Prafull’s motivational approach, has not only shaped a successful business but also fostered a community of chai enthusiasts. 

MBA Chai Wala’s story is a testament to the power of passion and perseverance in transforming dreams into a reality!

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Published By: Supti Nandi
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