Bubble Tea Startup Bets Big on India’s Growing Youth Beverage Market

Mumbai-based beverage startup Kathy’s Beverages, which operates the fast-growing bubble tea brand Bobakat, has raised Rs 6 crore in a pre-Series A funding round to strengthen its retail footprint and scale operations across India. While the company has not disclosed the names of the investors involved in the round, the fresh capital marks a major milestone in Bobakat’s ambitious growth journey.

Founded in 2024 by Rupali Ambegaonkar and Sannjeev Rao, Bobakat has quickly emerged as a rising player in India’s organised beverage segment, particularly among Gen Z and young urban consumers seeking globally inspired café experiences.

Expansion Plans Across Metro and Emerging Cities

The newly raised funds will primarily be used for product innovation, team expansion, marketing initiatives, and opening new stores across metro cities and high-potential urban markets. The startup currently operates compact-format outlets located in food courts and premium high streets, a model designed for scalability and operational efficiency.

Bobakat revealed plans to launch 35 new stores during the financial year 2026-27. Over the following two years, the company aims to open nearly 50 stores annually as part of its aggressive nationwide expansion strategy.

The startup believes its scalable retail format and focused consumer experience will help it tap into India’s rapidly evolving café and beverage culture.

Riding the Wave of Experiential Beverage Consumption

India’s beverage market has witnessed a significant shift in recent years, with younger consumers increasingly drawn towards experiential brands that combine taste, aesthetics, and social engagement. Bubble tea, once considered a niche category, is now gaining mainstream popularity in urban India.

Speaking about the company’s vision, Founder Rupali Ambegaonkar said that today’s consumers are looking for more than just beverages ,  they seek experiences, community-driven spaces, and global trends tailored for Indian preferences.

She added that the latest funding round would help Bobakat strengthen its operations, introduce innovative offerings, and expand aggressively across key markets.

Co-Founder Sannjeev Rao highlighted the untapped potential in India’s organised beverage ecosystem, especially in youth-centric consumption categories. He stated that Bobakat’s compact and scalable outlet model enables the brand to enter high-potential locations efficiently while maintaining healthy unit economics.

Targeting Rs 100 Crore in Revenue

Since its launch, Bobakat claims to have served over 10 lakh consumers. The startup is now targeting Rs 100 crore in net sales value over the next 36 months through phased retail expansion and stronger brand recall.

As India’s café and quick-service beverage segment continues to evolve, startups like Bobakat are positioning themselves at the intersection of affordability, experience, and global beverage trends.

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