With over 25 years in the espresso business, Vikram Khurana, CEO of Kaapi Solutions, has witnessed India’s coffee transformation first-hand — from the early days of café chains to AI-enabled espresso systems and rapid tier-2 expansion.
In conversation with BW Businessworld, Khurana discusses the company’s 110-plus crore revenue run rate, diversification amid Euro volatility, automation in coffee retail, sustainability integration and why India must craft its own scalable coffee template — not replicate Europe. Excerpts from the conversation.
Profitability will belong to those who understand scalability, cost control and localisation
Kaapi Solutions has grown steadily since inception. What was the core vision behind the brand?
When I started Kaapi Solutions in 2017, I brought with me two and a half decades of learning in espresso and coffee retail. We understood that anyone setting up a café has two fundamental questions: Is this business scalable and profitable? And who can guide me professionally?
We built Kaapi as a tech-and-service company. Yes, we sell machines — but more importantly, we provide know-how: how to set up, how to run, what to avoid, and how to scale. We represent 17–18 global brands suitable for the Indian market, including Astoria, which holds a strong position globally.
Our proposition is simple: we are a one-stop solution, without charging consultancy fees. Customers partner with us, and we bring operational intelligence to the table.
What have been the key strategic inflection points in your growth journey?
Flexibility has been central. India is a complex market. We offer machines ranging from Rs 92,000 to Rs 18–20 lakh, depending on the business model. We do not oversell technology to a customer serving 100 cups a day in a tier-2 city.
We also addressed industry pain points. One major challenge is hiring and retaining baristas. So we introduced automation solutions — machines capable of producing consistent milk textures without requiring a highly skilled operator.
Understanding customer needs first, and then aligning technology accordingly — that’s been our inflexion strategy.
How has your revenue profile evolved over the last three to five years?
We closed at over Rs 110 crore and are targeting approximately Rs 125 crore this year. It has been a challenging year because the Euro has appreciated sharply — and most of our exposure is to Italy, Germany and Switzerland.
Revenue-wise, around 55 per cent comes from traditional espresso machines. The balance is from automatic systems — and that segment has grown steadily over the last three to four years. Convenience-driven demand is rising significantly.
We are also localising. We’ve partnered with Astoria to assemble certain models in India, which will help mitigate currency risks.
What industry trends are shaping your strategy today?
We see three major trends shaping our strategy. First is scale. India’s coffee ecosystem is expanding rapidly, and we have aligned our growth accordingly. Over the past two years, we have grown our team from 65 to more than 170 members. We now operate warehouses in Delhi, Mumbai and Bengaluru, and we work with over 70 distributor partners across the country, including in smaller markets such as Nagaland.
Second is automation and AI-led precision. Customers want consistency without constant recalibration, so we are introducing AI-enabled systems that regulate grind size and manage extraction variability. We offer this technology not only in premium Swiss machines priced at around Rs 14 lakh, but also in more accessible alternatives at nearly half that cost.
Third is social media-driven consumption. Platforms such as Instagram are reshaping café culture. Visually striking latte art and “Instagrammable” beverages directly influence footfall. Today, coffee is as much about presentation and experience as it is about taste and aroma.
Sustainability is gaining traction globally. How is Kaapi Solutions integrating it?
Primarily through energy efficiency. We offer machines that reduce power consumption by 30–35 per cent through intelligent rest modes. In India, many cafés have intermittent brewing cycles — energy-saving tech matters.
On the green coffee side, while we don’t directly source beans, we connect roasters with growers offering certified options such as Rainforest Alliance. But consumer willingness to pay a premium remains a barrier.
We’re at an early stage in sustainability awareness, though the intent is growing.
You’ve spoken strongly about tier-2 and tier-3 markets. Why are they critical?
They are driving the next coffee wave. Rentals are lower, competition is limited, and cafés often report stronger profitability than metro counterparts. Cities like Indore demonstrate robust demand patterns. In fact, 2026 will likely see significant consumption growth from tier-2 and tier-3 India. We are strengthening our distribution network accordingly.
What structural shifts do you believe India’s coffee industry needs?
India must develop an India-centric model. We cannot blindly replicate Europe. Look at Luckin Coffee in China — over 20,000 stores, operating on a hyper-scalable, technology-driven model tailored to Chinese consumers. That’s the kind of thinking we need. We must design for Indian consumption behaviour, pricing psychology and scalability. If the model works and is asset-light, funding will follow.
Final outlook for 2026?
Strong tier-2 growth, rising automation adoption, and greater focus on operational efficiency. Coffee is no longer niche — it is mainstream. But profitability will belong to those who understand scalability, cost control and localisation. |
