Rise To Failure: Key Reasons Behind Failure Of MBA Chaiwala (Praful Billore)

MBA Chai Wala Story 

In this modern era, success has become quite a lucky thing. People from all over the world are either becoming successful or famous only because of the internet followed by social media. Moreover, if you do something different and catchy as compared to other people, the chance of you getting successful becomes a lot higher.

Similarly, we have MBA Chai Wala’s story from how this small tea shop became famous overnight and is now one of the fastest-growing beverage companies in the country. 

Many people have surely heard of this popular hot beverage brand which is famous for serving different types of tea to customers.

But, today in this article, we will talk about everything about how the company was established, who is the owner, his background, qualifications, why the name MBA Chai Wala, and many more. Other than this, we will also explore the facts of when both the tea-serving company and its owner made headlines all over the internet and media.

What is MBA Chai Wala Story?

MBA Chai Wala is a big brand that was founded by Prafull Billore. He is the son of a farmer who did not have the same thoughts as other children when he was small.

Ever since he was a small child he always had the intention of doing something different than others. This is something that has helped him to establish this tea business and make it so popular in the world market today.

Now, the name of the brand makes the brand very interesting. It started with a small roadside shop and the unique name suggested by the owner made the shop go viral. People from different parts of the state and country soon started visiting this shop and trying the tea that was being offered.

Started his business with just rupees 8000, the owner of the brand used to give out “free tea for singles” on Valentine’s Day. This became a turning point in his life and career. This unique marketing strategy used by the company owner started grabbing the attention of people in the market.

Other than the unique and genuine products sold by the brand, the owner’s hard work and determination towards his company made the whole brand very interesting and that is why the brand is famous today. 

This led the brand to a huge rise in the Indian market. People from different parts of the country started visiting his shop to try out the tea that was served. Other than this, people also wanted to become a part of this hugely-famous tea shop.

This is one of the reasons why the owner of the company started to roll out their franchising option to people who wanted to become a part of the company. Today, the brand has already opened up 400+ outlets in more than 100 cities across the country.

In the upcoming few years, the owner of the brand is planning to open up more stores across the country so that people can come and enjoy the tea that is served by this company.

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Early Life and Education of MBA Chaiwala

Prafull Billore is the older son of Sohan Billore and his wife. His father is a farmer by profession. Prafull Billore was born in Dhar, Madhya Pradesh. Prafull Billore finished his schooling in his hometown itself. But, one decision that he took that played a great role in changing his life was not making friends of his age.

In a talk show, he revealed that when he was small or a school-going kid he never made friends of his age and did not go to movies or birthday parties. Instead, when elders used to visit his father he used to go sit near them so that he could learn something new. 

Moreover, we could say that the childhood of Prafull Billore was modest. It was not very extraordinary or something very different from others. After he finished school, Prafull revealed in an interview that his parents wanted him to complete his MBA in order to secure a high-paying job.

His parents just wanted him to be very happy and satisfied with his life. But, we know that was not something he wanted to do with his precious life. 

After his schooling was done and he completed his BCom degree, he went to Gujrat and was qualified for IIM Ahmedabad. He wanted to do something else and not get into books so he now thought of roaming all over India. He visited every state in India in a very low budget.

Prafull found a job at McDonald's where he was paid Rs 300 a day. He worked in McDonald’s because big people like Jeff Bezos, Warren Buffet, and many more started their journey by working at McDonald’s. Prafull did not have a vision then of what he wanted to achieve with his life in future. 

After working for four and a half months, he now did not work under anyone else. After roaming the whole country, he found out that people all over the country drank tea. So, after quitting his job at McDonald’s he thought of starting his own tea business.

MBA Chiwala Vs Chai Sutta Bar

He lied to his family saying that he had taken up a course and borrowed Rs 15000 from his father and started this journey. He stood in his stall for two and a half years. Initially, the name of his shop was Mr. Billore but, he thought that was not fit for the shop.

So one night he thought of using M from Mr, and B from Billore, and A from Ahmedabad. So, the name came out MBA Chai Wala. This name got mixed reactions from customers but, Prafull Billore still never lost hope and soon he opened up a cafe in the same area. He even started giving out free tea during any events such as cycling, or any other events. 

Slowly, the owner and the brand started getting huge recognition in the country. Delhi and Bihar government also started the campaign with MBA Chai Wala. Prafull started giving lectures to some of the top colleges about his journey.

The colleges he wanted to take admission, he started giving lectures to colleges. Throughout this journey, the owner of the brand revealed that he never stopped working on his basics. Every day even after getting famous, he worked on the basics and served tea to customers who came to his stall.

He requests everyone to follow the same never forget their roots and always work hard to achieve what they have dreamt. 

He wants to expand his business all across the globe and in every district he wants people to drink his tea. Currently, the company is working in the education and health sector as well such as MBA Chai Wala Academy Model, and MBA Chai Wala Foundation for all cancer patients. 

It did not take very long but, the company was into lots of controversies. The company started making headlines due to some reasons which may or may not be true. These huge controversial headlines led to the downfall of MBA Chai Wala in the country.

People started getting angry at the company and the owner of the controversial news that they were making. We will talk about the controversy in the next paragraph of this article. 

Fall of MBA Chai Wala

Ever since the brand was established, it saw nothing but growth. It was growing amazingly, mouth-shutting all the trollers but, very soon it fell into deep controversy. It was surely one of the darkest phases in the company’s history. 

At the beginning of this year, MBA Chai Wala was the trending or hot topic. Almost every business channel was talking about this brand. Prafull knew that just by selling tea he could not expand his business. So, the best way to expand his business and increase business opportunities in the market was by offering a franchise option. 

In some way we could say that, Praful started selling dreams to middle-class people by saying if you want to earn good then take their franchise. So people started selling out their land to pay the franchise fee and start the franchise.

People even revealed that the owner of the brand promised that every day they would make a sale of Rs 12-15k but, in reality, it was just the opposite. This is one of the reasons why many franchises that could not make their sale had to close down their franchise. 

MBA Chai Wala works on the FOFO model and offers three types of franchises to customers. The first type is the Kiosk Model which requires 150 square feet of area, its franchise fee is Rs 5 lakhs and including equipment, interior, and other things the total cost of this model would be Rs 15 lakhs.

The second type of franchise is the Dining model which requires 400-600 square feet of area, the franchise fee is Rs 6.5 lakhs and including other costs, you would need to invest Rs 25 lakhs max. The third model is the Lounge model which requires 800-1000 square feet of area and the total investment of opening this type of franchise is Rs 35-45 lakhs.

To earn profit from any of these franchise types, the franchise owners must make a sale of Rs 3-5 lakhs per month. This is surely a very big amount for selling tea and was eventually not achieved by many franchise owners. 

Now, this was the reason why MBA Chai Wala was accused of defrauding a group of young people who claimed that the owner took lakhs of rupees from them for the franchise but failed to deliver the promise. This young group complained to the Lasudia police station, and the DCP who was present there immediately started an investigation. It was Ashish Tiwari who complained against Prafull Billore and his company. 

However, Billore’s lawyer denied all the allegations and claimed that everything that was done was in accordance with the contract. The investigation is still ongoing and this controversy has been coupled with a mismatch between expectations and reality which has further affected hugely to the brand’s reputation and public perception of the brand. 

We are hoping that the business will look forward and try to build good relations and gain trust from customers in the market. 

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