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Tea is not just a drink in India—it’s a daily ritual. With over 1 billion cups consumed every day, the chai business has proven to be one of the most recession-proof and scalable ventures. But what if you could start a tea franchise under 1 lakh rupees?
Yes, it’s possible. With several emerging and regional brands offering micro-franchise or kiosk models, even small investors can now tap into this evergreen business. In this blog, we’ll uncover the best low-cost tea franchises under ₹1 lakh, how they work, what you get, and how to apply—perfect for first-time entrepreneurs, students, or small-town business aspirants.
Why Invest in a Tea Franchise Under ₹1 Lakh?
- Low Barrier to Entry: Minimal investment means low financial risk.
- Massive Demand: Tea has universal appeal across all demographics.
- Simple Operations: No complex machinery or heavy staff needed.
- Quick ROI: Daily cash sales ensure faster recovery of investment.
- Scalable: Start small, expand as profits grow.
Top Tea Franchise Brands Under 1 Lakh in India (2025)
Here are a few tea brands and models that offer ultra-low investment options or micro-franchise deals under ₹1 lakh:
1. Madrasi Chai (Micro Kiosk Model)
- Investment: ₹80,000 – ₹1,00,000
- Space Needed: 40–100 sq. ft.
- USP: South Indian flavour twist, portable cart models
- Includes: Training, starter kit, branding material
2. Chai Calling (Mobile Franchise Model)
- Investment: ₹60,000 – ₹90,000
- Includes: Branding, chai premix, kettle kit, operations support
- Ideal For: Small towns, college areas, footpath vendors
3. MBA Chai Wala (Student Startup Kit)
- Investment: ₹99,000 (Special youth model)
- USP: Popular brand, business coaching, scalability
- Includes: Initial stock, branding rights, business training
4. Tea Time (Referral Reseller Program)
- Investment: ₹50,000 – ₹1,00,000 (partner-led models)
- USP: Affordable bulk buying + commission on the supply chain
- Note: Limited to specific regions
- Visit Tea Time Official website here
Important Tip: Always verify the brand directly through their official website or authorised agent before paying any amount.
Want to learn more about franchises? Check out our blogs related to franchises here
How to Start a Tea Franchise Under ₹1 Lakh
Here’s a general step-by-step guide:
- Shortlist the Brand: Based on locality, target market, and franchise model.
- Contact Officially: Via their website or direct WhatsApp/phone.
- Understand the Inclusions: Equipment, ingredients, branding rights, and training.
- Choose Location: High footfall areas like markets, colleges, bus stands.
- Complete KYC & Sign Agreement
- Receive Starter Kit & Setup
- Launch & Promote Locally
Key Takeaways
- Tea franchises under ₹1 lakh are a reality in India for 2025.
- You can start with mobile carts, kiosks, or mini setups.
- Ideal for side income, students, small town businesses, and first-time entrepreneurs.
- Look for brands that offer training, supply support, and brand recognition.
- Always validate the franchise provider before investment.
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Conclusion
If you’re dreaming of becoming an entrepreneur without burning a hole in your pocket, a tea franchise under 1 lakh is your best bet. The chai business is booming, scalable, and needs little experience to start. Focus on location, customer service, and brand support, and you’ll soon be sipping success—one cup at a time.
FAQs
1. Can I really start a tea franchise under ₹1 lakh in India?
Yes, several brands offer micro or kiosk models below ₹1 lakh.
2. What is included in such a low-investment model?
Usually, a starter kit with kettle, premix, branding materials, and training.
3. Do I need prior experience in food business?
No, most brands provide complete training.
4. How much can I earn monthly?
Profits can range from ₹15,000 to ₹50,000 depending on footfall and location.
5. Is a license required to run a tea stall?
Yes, a basic FSSAI license and local municipal permission may be needed.
6. Can I operate from home or a mobile cart?
Yes, some franchises offer mobile chai cart models.
7. Which is better – local tea shop or franchise?
A franchise gives you brand recognition, training, and trusted supplies.
8. What’s the ROI period for such a franchise?
Usually between 3 to 9 months.
9. Is there any royalty or hidden fee?
Most micro-franchises under ₹1 lakh do not charge royalty.10. Where can I apply for these franchises?
You need to contact the brand directly via their official website or contact form.
