MBA Chai wala Franchise Fraud? | MBA Chai wala Vs Chai Sutta Bar

Who is MBA Chaiwala?

The CEO and Founder of MBA Chai Wala are Prafull Billore. In Ahmedabad, he opened for business on July 25, 2017. He started his tea shop with INR 8,000, and as of 2023, his net worth is over Rs 24 crore. Prafull was born on January 14, 1996, in Madhya Pradesh. After completing his degree, he decided to register for the MBA programme at IIM Ahmedabad. However, he fell short of the required number to be given a place at IIM. After considerable difficulties, he put only INR 8000 into the opening of MBA Chai Wala, a tea business. MBA Chaiwala’s revenue is around 45 and 46 lakhs per month and their daily income is 1.5 lakh rupees.

Get Instant 50,000 To 10 Lakh Loan From Aadhar Card

Name	Prafull Billore
MBA Chaiwala full form	Mr. Billore Ahmedabad Chaiwala
MBA Chaiwala age	27 years
MBA Chaiwala wife	Shreya Billore
MBA Chaiwala Net Worth	Over Rs 24 crore (source- dnaindia.com )

Mba Chai Wala Franchise

MBA chaiwala controversies

Ashish Tiwari, a resident of Indore has filed an FIR against the director of MBA Chaiwala Prafull Billore at Lasudia Police Station as MBA chaiwala has asked 10 lakhs rupees against a franchise fee claiming the franchise will fetch him 10k-15k rupees per day. Ashish has told that 10k is far away, and the franchise is producing 600 rupees a day. Lasudia, Bhawarkua, South Tukoganj, MIG, Vijay Nagar and Palasia police stations have received 28 complaints against Prafull Billore.

Tanmay Chokse, Franchise owner of Bhawarkua has spent 40 lakhs rupees. The franchise has been shut down.
Vineet Rai, one of the franchise owners has said that he was charged 27 lakhs rupees for the franchise. These are some of the MBA Chaiwala fraud cases.
Prafull Billore has charged this high MBA Chaiwala franchise cost for raw materials, equipment cost etc.

Maximum franchises are in break-even condition, no profit no loss condition or in huge losses.

Checkout Some Beautiful Boat Products

MBA Chai Wala Franchise Fraud Main Reason

Mba chaiwala has two faces. Prafull has a public image and he is a social celebrity. The main reason for Prafull being famous is his way of speaking. He enlightens his weak background story in front of an audience and the audience has the mentality to care for the weakness.
His big mistake was his Target audience. He created a large audience circle out of which 15% are urban people and 85% are tier II and tier III people. So the tier II and tier III people started to suffer from FOMO. At that period of time, Prafull asked them to struggle like him or to buy franchises. And people end up taking fraud franchise models.

The wrong business model :
MBA Chaiwala has three types of business models-
Kiosk, Franchise, Lounge.
The lounge model needs 10-12 lakhs franchise fee, 15-20 lakhs for interior and equipment and 7-8 lakhs rupees for raw materials and other costs. One needs a total of 40 lakhs rupees for the lounge model franchise. After taking the franchise one needs to earn a profit of 3.5 lakhs per month in order to reach the break-even analysis. In order to make a profit of 3.5 lakhs per month, one needs a sale of 5 lakhs rupees per month. So daily sales need to be 17000 rupees. Due to this MBA Chai Wala fraud news came up with different people.

But there are 3 big reasons why MBA Chaiwala sales are not up to the mark. They are:

Location- Most of the outlets are present in 2nd and 3rd-tier cities. Fewer outlets in urban cities.
Audience- Most of the audience are from middle-class families where people want to have affordable tea.
Competitive pricing- MBA chaiwala sells tea at a price starting from 75 to 100 rupees. But Tapri lovers want to have tea for 7 to 10 rupees. So when you want to sell sub-premium products to affordable segments then it will be very difficult to catch the market.

MBA Chaiwala Downfall

The main reason for the downfall of any business is Margin and Competitive pricing. MBA chaiwala doesn’t meet any of these.
Competitor Chai Sutta Bar has the perfect strategy for this type of business. The chai from them is only for attracting customers to their shop and the food items which are available are both affordable and this helps them to make the actual profit.
Moreover, his franchises are not making money and trapping common people. In the end, it has been cleared by the company that no franchise fee will be returned to any franchise owner who has lost their money as there is no clear agreement between them regarding this.

MBA Chaiwala Panoti

In the past few months MBA chaiwala has been trolled with a new term panoti. Many YouTubers are roasting him and calling him Panoti. Few such incidents are shared on the internet behind the reason for calling Prafull Billore a panoti.

Memes regarding Prafull Billore being a “panoti” or terrible omen started to catch attention in March 2023. Billore was interviewed on August 4, 2022, by Manish Kashyap of “SachTak” news in a YouTube post that received over 12 million views in just 7 months. Manish Kashyap was detained in March 2023 for his role in the propagation of incorrect information concerning migrant workers in the Tamil Nadu state.
Prafull took a photo with India cricketer Surya Kumar Yadav. After this, Yadav could not make runs and got out without making runs.

Youtuber and Influencer Arvind Arora did an interview with Prafull Billore in November 2021 and later he faced an unfavourable situation on the Indian Shark Tank show in March 2023. His pitch completely flopped on the show.
MBA Chaiwala published a photo with Gautam Adani on April 21st, 2022 and in early 2023, Adani was implicated in a corruption scandal. Adani formerly ranked among the world’s richest people, but following the photo, he dropped to the 25th spot.
He posted a picture with Aman Gupta, the founder of boAt. After this, there was a 20% drop in the profit of boAt company. A picture with the founder of MamaEarth, Ghazal Alagh got viral on the internet. Currently, MamaEarth is at a loss.

Not only business persons, but Bollywood celebrities are also on this list. Siddharth Malhotra, a very known face from Bollywood once clicked a picture with Prafull. Post this he gave three flop films and faced a low phase in his Bollywood career.

Is MBA Chaiwala Fake, Roast by Youtubers

Many YouTubers have roasted Mba chai wala in the past few months. He is roasted and grilled for spreading meaningless motivation and Bol Bachchan talks.
Lakshay Chaudhary with more than 2 million subscribers roasted Prafull and called him Gyan wala chala. He roasted him in his motivational videos. Lakshay called Prafful’s motivational videos as illogical, meaningless and insensible.

Thugesh with more than 4 million subscribers called Prafull As Illogical PrafullBillore as his motivation seems to be completely illogical.
Saloniyappa with around 2 million subscribers roasted Prafulland gained more than 7 lakh views on the video.
Some YouTubers have revealed their views on the dark side of MBA chai wala franchise. Few are there who draw a comparison between Mba chai wala and chai sutta bar, which have been revealed in detail in the blog further.

Comparison between India’s two tea sellers entrepreneurs MBA Chai Wala vs Chai Sutta Bar

Owner of MBA Chai Wala Prafull Billore

The CEO and Founder of MBA Chai Wala is Prafull Billore. In Ahmedabad, he opened for business on July 25, 2017. He started his tea shop with INR 8,000, and as of October 2021, his net worth was INR 3 crore. Prafull was born on January 14, 1996 in Madhya Pradesh. After completing his degree, he decided to register in the MBA programme at IIM Ahmedabad. However, he fell short of the required number to be given a place at IIM. After considerable difficulties, he put only INR 8000 into the opening of MBA Chai Wala, a tea business.

Owner of Chai Sutta Bar Anubhav Dubey

The founder and owner of Chai Sutta Bar is Mr. Anubhav Dubey. One day, his childhood friend, who had completed eighth grade in his village and was now attending Indore for the remaining classes, gave him a call. He initially met Anand Nayak there, who would later join Anubhav as a co-founder. When Anand called Anubhav in Delhi and suggested they create a business together, something snapped, and the way was set for Chai Sutta Bar to open. The two co-founders rapidly learned they were operating on a very tight budget and had no money for things like branding, interior design, or marketing. They were able to design and open the first facility in Indore, which was near to a hostel, with the aid of friends who loaned them items and used furniture. They didn’t have the money to print a banner, so they took a useless piece of wood and manually wrote the name “Chai Sutta Bar” on it. Young folks related to the name and overall theme.

Comparison between MBA Chai Wala & Chai Sutta Bar Franchise

MBA Chai Wala Franchise

The MBA Chai Wala franchise is one of the most well-known tea franchises in India, especially in first- and second-tier cities. They currently operate in more than 50 different cities around the country through MBA chai wala outlets. As they continue to grow, they plan to establish bases all over India. This tea craze is just getting started. MBA Chai Wala launched his first stall on 25 July 2017. They presently enjoy a good standing in the food and beverage industry.

Chai Sutta Bar Franchise

The Chai Sutta Bar Franchise wants to spread its unique cultural blend and ideas all over the world. Since they started six years ago, they have accomplished incredible deeds and massive duties. They are located in more than 175 cities, the 325 locations. Their countless kulhads and their global reach speak for the product. Thanks to the patrons’ devotion and affection, Chai Sutta Bar is currently increasing beyond all recognition.

Comparison between MBA Chai Wala & Chai Sutta Bar Franchise Menu

MBA Chai Wala Menu

Regular Chai

Masala Chai
Elaichi Chai
Chocolate Chai

Tulsi Chai

Along with these, they serve various types of beverages such as regular tea, Green tea, Coffee, three types of Mojito, and Coolers. For food types of Maggi, Sandwich, Puff, Maskaban, French fries, etc. is served.

Chai Sutta Bar Menu

Chocolate Chai

Adrak Chai
Rose Chai
Elaichi Chai

Paan Chai
Kesar Chai
Masala Chai

Tulsi Chai

Along with these, they serve various types of tea, Ice tea and Lemonade. For food, they serve sandwiches, Pasta etc.

Comparison between MBA Chai Wala & Chai Sutta Bar Franchise Cost

MBA Chai Wala Franchise Cost

Franchise cost- Rs. 3 lakhs
Total investment- Rs. 8-10 lakhs
Term of agreement- 3 years

Chai Sutta Bar Franchise Cost

Franchise cost- Rs. 6 lakhs
Total investment- Rs.16 lakh
Term of agreement- 5 years

Others comparisons include

Factors	Chai Sutta Bar	MBA Chaiwala
Product	A wide selection of snacks and quick snacks such pizzas, pastas, maggies, burgers, sandwiches, and more are available, along with a variety of teas and coffees with distinctive flavours and toppings.	Various types of chai, coffees, shakes, and snacks such sandwiches, Maggie, pizzas, and pastas are available.
Business Model	Low-investment franchise models give budding entrepreneurs the chance to launch their own companies.	Franchise business models that follow the “FOFO” (Franchise Owned, Franchise Operated) idea are yet another fantastic way for entrepreneurs to launch their own company using a tried-and-true business model.
Expansion	450+ Outlets in more than 195 Tier 1, 2 & 3 cities. Global presence in Oman, the UAE, and Nepal. In 2023, further growth is anticipated in Canada, the USA, and the UK.	200+ Outlets, mostly in Tier 1 & Tier 2 cities, are spread over more than 50 cities in India.
Revenue	greater revenue as a result of a wider franchise network.	Fewer outlets lead to lower revenue compared to Chai Sutta Bar.
Marketing strategies	Social media marketing, celebrity endorsements, sponsorships of events, alliances, holiday deals and offers, creative packaging, and products.	Social media marketing, public relations, word-of-mouth, holiday promotions, social sharing, and encouraging customers to represent a company.
Vision	● In order to provide people with flavorful experiences and happy memories, it is important to bring Indian cultural values from their origins and combine them with top-notch surroundings. ● spreading Kulhad Chai worldwide, encouraging people to try it, and letting them sense the aroma of Indian soil with each cup.	● to cultivate a startup culture, support entrepreneurship, and inspire and motivate the nation’s youth to achieve their dreams. ● provoking discussions and raising awareness about themes such as establishing a business, maintaining a healthy lifestyle, resolving social concerns, battling climate change, defending civil rights, addressing gender inequity, and more.
USP	● Providing tea in environmentally friendly kulhads (each day utilising 4,50,000 kulhads, employing more than 500 families) ● serving classic tea in a setting akin to a bar. ● serving a variety of the tastiest and most popular foods and drinks to satisfy appetite and taste. ● cost-effective price. ● Giving orphans and underprivileged groups of society employment. ● strong presence online.	● Customers are provided with a remarkable and genuine experience because to Kulhads’ distinctive and unforgettable tea serving style, toast, and tissue. ● Prafull Billore, the shop’s proprietor, is renowned for having cordial chats with his clients, which draws a sizable number of people into his store. ● Dedicated area in the store for job seekers and potential employers. ● excellent social media presence ● organising unusual activities like entrepreneurship programmes or book exchange programmes.
Target audience	Students, young and middle-aged working professionals, and tea lovers enjoy a hip and contemporary tea cafe experience.	People of all ages who value traditional tea-making methods and like real Indian chai.

MBA Chaiwala Net Worth per Month

MBA Chaiwala Company makes over 50 lakh rupees each month. The franchise fee, royalties, and other activities performed by the brand are the primary sources of income.

MBA Chaiwala Turnover

Prafull Billore began his firm with an investment of 8000 rupees. MBA Chaiwala’s current revenue exceeds $50,000.

MBA Chaiwala Networth in Rupees

MBA Chaiwala Company’s net value as of December 2022 is 3.4 crore in Indian currency.

MBA Chaiwala’s Age

Praful Billore is a mature, educated businessman who turned 27 this year on 14th January.

MBA Chaiwala 2023 Networth

Prafull currently earns close to Rs 1.5 lakh every day. Prafull Billore, on his own, is worth $30 million. He also has a monetized YouTube account. MBA Chaiwala’s financial situation is robust and stable as of 2023. With a daily revenue of 1.5 lakh rupees, the MBA Chaiwala’s monthly income is between 45 and 46 lakh rupees. This income is entirely derived from his modelling and business endeavours. Furthermore, MBA Chaiwala’s YouTube channel had 1.63 million subscribers as of 2023. His net worth is likely to more than double this year.

Prafull Billore Networth

Prafull Billore’s monthly company income exceeds $200000.

MBA Chaiwala’s net worth is nearly 30 million.

Prafull Billore’s Wife

Prafull Billore married Shreya, a lawyer, on December 12, 2020. Shreya Billore is the Chief Executive Officer (CEO) of MBA Chai Wala.

MBA Chaiwala Company Valuation

MBA Chaiwala was founded in 2017 with a meagre investment of Rs 8000. The same company is now worth more than a crore, but with more décor and a menu.
Prafull Billore’s company enjoyed great growth after he became an internet celebrity in 2020, as individuals began leasing its franchisees around the country. MBA Chaiwala expects operating revenue of between Rs 1 crore and Rs 100 crore in fiscal year 2022. EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) for MBA Chaiwala increased by 3332.78% year on year. Its net worth increased by 487.04% over the previous year.

FAQ’s

MBA Chai Wala or Chai Sutta Bar Who is profitable?

Chai Sutta Bar is Profitable.