Blue Tea’s Growth in the Herbal Wellness Market

Blue Tea leads the herbal wellness segment with a remarkable 28% year-on-year increase in operating revenue, achieving Rs 37 crore for the fiscal year ending March 2025. This significant growth underscores the brand’s continued profitability throughout the year.

Impressive Revenue Growth and Market Contribution

Co-founder Nitesh Singh shared with Startup Superb that the brand experienced a 68% rise in annual recurring revenue, driven by increased order frequency and enhanced channel penetration. He noted that India accounted for 80% of the overall revenue, with international markets making up the remaining 20%.

Expanding Beyond Metro Cities

The brand is not just focusing on metropolitan areas; nearly 59% of domestic sales are now generated from non-metro or tier II markets. This trend indicates a growing awareness and acceptance of herbal wellness beverages in smaller cities. Singh mentioned that the company’s own website contributed around 50% to India’s revenue as of December 2025.

Growth Driven by Quick Commerce

Quick commerce has emerged as a major growth factor for Blue Tea in FY25. Singh emphasized a staggering 20X increase over the last six months across platforms including Blinkit, Flipkart Minutes, Amazon Now, and Zepto. The company sells approximately 5,200 units daily across various channels, with India’s sales having expanded 20X over the last three years.

Operating in a Flourishing Market

Blue Tea operates within an estimated $6 billion wellness beverage market, which is driven by the rising consumer preference for caffeine-free, plant-based, and functional drinks. Founded in 2018, the company implements a farm-to-cup sourcing model, working directly with over 600 farmers to ensure quality-controlled procurement and transparent supply chains while maintaining disciplined margins.

Future Projections and Growth Strategies

As of January, the company reported Rs 52 crore in revenue for the current fiscal year and is aiming for Rs 65 crore for FY26, targeting over 60% year-on-year growth with a specific emphasis on quick commerce and distribution expansion. Over the next three years, Blue Tea aspires to scale its revenue to Rs 350 crore.

With sustained profitability, deeper penetration into non-metro areas, and strategic quick commerce initiatives, Blue Tea appears poised to strengthen its scale through robust distribution capabilities and customer loyalty, avoiding reliance on discount strategies for growth.