Tea retail startup Chai Thela Pvt Ltd (CTPL) is now a subsidiary of listed firm South Asian Enterprises Ltd, according to stock exchange disclosures by SAEL.
SAEL acquired 7,359 equity shares, representing a controlling stake of 60.34%, in Noida-based CTPL for Rs 29 lakh.
The deal was first announced in February 2020 but the terms were renegotiated due to coronavirus.
CTPL had in 2016 raised Rs 1.5 crore ($218,000) in seed funding from early-stage investment firm Quarizon which acquired 9% stake in the company.
The current deal has wiped out more than 97% of Quarizon’s investment as CTPL that was valued at Rs 16.7 crore in 2016 has been priced at just over Rs 48 lakh currently. Quarizon did not respond to queries till press time.
SAEL is a manufacturer, supplier, and trader of earthing compounds, lightning arrester, earth electrodes and surge protection devices.
CTPL, which was launched in 2014 by Pankaj Judge, offers 30 different varieties of tea and 25 types of snacks. The company runs over 30 outlets in Delhi-NCR.
It competes with a bunch of new-age tea retail start-ups such as Chai Point, Chaayos, and Tea Trails that aim to change the way the popular beverage is consumed in India.
Chai Point raised Rs 60 crore in January 2021 from a group of investors at an equity valuation of Rs 460 crore and Chaayos raised Rs 132 crore in February last year in a round led by Think Investments.