At 18, Sanjith Konda House left his business studies in Melbourne to pursue an idea rooted in his childhood fascination with tea. His venture, Dropout Chaiwala, crossed AUD 1 million in sales within a year and has since expanded to three outlets, building a business around Indian chai in a city known for its coffee culture.

The journey began after Sanjith moved from Bengaluru to Melbourne to study business. He dropped out in his fifth semester to start his own venture, investing AUD 200,000 with support from friends and seniors.

His first outlet opened on Elizabeth Street in Melbourne. The decision was a considerable gamble, given the city’s strong coffee culture and the challenge of introducing an Indian tea-focused business to a diverse customer base.

Sanjith’s interest in tea, however, had started long before he moved to Australia. He saw an opportunity to bring the familiar taste of Indian chai to people living far from home while introducing the beverage to customers who were less familiar with it.

How Dropout Chaiwala Found Its Place in Melbourne

Building a chai business in Melbourne meant appealing to two different audiences. For Indians living in Australia, traditional tea and snacks offered a taste of home. For local customers, the menu needed to provide something new without making Indian flavours feel unfamiliar.

The business began with five varieties of chai, including options designed around familiar Indian tea-drinking habits. Bombay Cutting became one of the offerings that appealed to Indian customers, while pakodas and other snacks helped recreate the experience of enjoying tea with something savoury.

The menu gradually expanded to include toast, biscuits, bun maska, bun masala and pastries. Dropout Chaiwala also introduced fusion drinks, including chaipuccino and green tea blends, to attract customers interested in alternatives to conventional coffee.

This mix of traditional chai and newer combinations helped the business appeal beyond the Indian diaspora. Instead of relying solely on nostalgia, the venture built its offering around different tastes and preferences.

Sanjith had acknowledged the challenge of entering a market dominated by coffee, explaining that his childhood fascination with tea eventually led him to develop the business idea. His parents were initially shocked by his decision to leave college and concerned about his plans to start a venture of his own.

From One Chai Outlet to Three Stores and a Mobile Truck

Dropout Chaiwala’s growth has extended beyond its original Elizabeth Street location. The business has expanded to three outlets, including a larger store on La Trobe Street, and now employs 40 people.

The company has also taken its products beyond traditional storefronts through a mobile chai truck. The truck serves universities, festivals and weddings, giving the business another way to reach customers and participate in community events.

This approach allows Dropout Chaiwala to reach people in different settings rather than depending entirely on customers visiting its stores. Universities provide access to students, while festivals and weddings offer opportunities to serve larger gatherings.

Operations at the flagship store are managed by Apoorva Singla, an Indian student who helps maintain quality and strengthen the business’s connection with its community.

The venture’s expansion from a small menu to multiple outlets, event services and a 40-member workforce marks a significant shift from its initial launch.

Why the Founder Left College, but Does Not Dismiss Education

Sanjith’s decision to leave his business course is central to the story behind Dropout Chaiwala. However, his experience does not amount to a blanket rejection of formal education.

His advice to students is to avoid abandoning their studies without careful thought. His own journey reflects a decision to pursue a particular business opportunity, rather than a claim that academic qualifications have no value.

At the same time, he places greater emphasis on passion and hard work than formal qualifications when hiring people for the business. That approach reflects his belief that people can build careers through practical experience and commitment.

His family’s response has also changed since the venture began. The initial uncertainty surrounding his decision to drop out has given way to pride in what he has built, including the employment opportunities created by the business.

Dropout Chaiwala’s Plan to Expand Across Australia

Sanjith’s next ambition is to establish at least one Dropout Chaiwala outlet in every Australian city. Achieving that goal would take the business beyond its existing Melbourne presence and introduce its Indian chai-focused concept to a wider market.

The company’s existing mix of traditional beverages, fusion drinks, snacks and mobile services provides several ways to serve different customer groups. Its workforce of 40 people also reflects the operational scale the business has reached since its first outlet opened.

However, nationwide expansion will require the venture to build on the customer base it has established so far while maintaining consistency across locations.

For Sanjith, the journey from Bengaluru to Melbourne has become a story of turning a personal interest into a growing business. What began with an investment of AUD 200,000 and a menu of five chai varieties has developed into a three-outlet operation that employs 40 people.

Crossing AUD 1 million in sales within its first year gave Dropout Chaiwala an early milestone. Its longer-term test will be whether the business can carry the appeal of Indian chai beyond Melbourne and establish a lasting presence across Australia.

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