Dropout Chaiwala: Indian Student In Australia Quits College To Sell Tea, Now Makes Rs 5 Crore A Year
Sanjith Konda, originally from Bengaluru, founded Dropout Chaiwala in Melbourne after dropping out of college in 2021. His outlet now has multiple locations and 40 employees.
The bustling Elizabeth Street in Melbourne, Australia, is home to a thriving tea outlet with an unusual name – Dropout Chaiwala. The man behind this brand is Sanjith Konda, once an ambitious student from Bengaluru. Sanjith took a bold leap by leaving college to pursue his passion for tea, a decision that ultimately reshaped his destiny.
Sanjith’s journey began in 2018 when, at just 18 years old, he moved to Australia to study for a Bachelor of Business Studies at La Trobe University’s Boondora campus. For four semesters, he remained committed to his academic journey, but in the fifth, he realised that textbooks and lectures were not his calling. Instead, his love for tea led him down an unexpected path.
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Dropping out of university is never an easy choice, and for an international student in Australia, it is fraught with financial and social risks. But Sanjith was no stranger to independence. His father, a mechanical engineer in Saudi Arabia, provided for the family, while his mother managed their home. However, in Melbourne, Sanjith supported himself. To cover his expenses, he took up various jobs, from washing dishes in a canteen to working at a petrol station.
In 2021, along with his three friends – Asar Ahmed Saeed, Pritam Akula, and Arun P Singh – he invested Rs 18 lakh (approximately $30,000) to launch a tea startup. They named it Dropout Chaiwala, a brand that immediately sparked curiosity among customers.
Starting with just five varieties of tea, including masala chai, ginger-honey, and mint-lemon blends, the brand slowly gained traction. Word spread that Dropout Chaiwala was the place to go for an authentic cup of tea. Clever marketing strategies helped grow their customer base, and soon, the humble tea stall began expanding. Samosas and sandwiches were added to the menu, with a cup of chai and a snack priced around Rs 270 ($4.50).
By March 2023, Sanjith took another leap forward by launching a mobile tea truck, a strategic move to cater to university events, festivals, and even weddings. By August, Dropout Chaiwala had expanded to a new store on La Trobe Street and an outlet at Melbourne’s Southern Cross Station. Today, the brand employs a team of 40 people and has established itself as a formidable presence in Melbourne’s culinary landscape.
According to media reports from 2022, Dropout Chaiwala was generating an annual turnover of Rs 5.2 crore ($650,000). While no updated financial figures have been disclosed, it is estimated that after expenses, Sanjith’s net profit stands at approximately 20% of total revenue.
In a heartfelt Instagram post from 2023, Sanjith shared a deeply personal moment: the first time his mother visited his shop and tasted the tea he had built his business around. “Her happiness was so overwhelming that even the walls of Dropout Chaiwala felt it," he wrote.
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