How Hatti Kaapi Grew From A ₹5 Coffee Stall Into A Multi-Format Coffee Brand

In 2009, U.S. Mahendar started Hatti Kaapi with a roughly 30-square-foot outlet in Bengaluru’s Gandhi Bazaar, selling South Indian filter coffee for just ₹5 a cup. What began as a small experiment grew into a coffee business serving customers across retail outlets, airports and corporate campuses.

Rather than building a conventional café chain, Hatti Kaapi focused on affordability, familiar flavours and strategic locations. Its expansion into corporate campuses, hospitality supply and packaged coffee products has helped diversify its business beyond walk-in customers.

But scaling comes with its own challenges. The company’s consolidated revenue reached ₹44.11 crore in FY25, while its reported net loss widened to ₹18.59 crore. Its journey highlights both the potential of building a consumer brand around an everyday product and the economics of expanding physical retail.

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