The idea eventually became Dropout Chaiwala, a tea business that reportedly crossed AUD 1 million in sales within a year of its launch. Melbourne is known for its coffee culture, but Sanjith Konda House believed there was room for another kind of brew. The Bengaluru native wanted to introduce more people to Indian chai, complete with its familiar spices, comforting flavours and snacks.
He launched Dropout Chaiwala with an investment of AUD 2 lakh, partnering with his friend Asar Ahmed Syed and two college seniors, Preetam Akula and Arun P Singh. The business expanded to additional outlets and reportedly recorded more than AUD 1 million in sales within its first year, according to the account. Dropout Chaiwala reportedly provided jobs to around 40 people, and Sanjith believes that formal qualifications should not be the only measure of a person’s ability to work or grow professionally.
They introduced a chai truck that could serve tea at college events, weddings and festivals. That figure refers to reported sales, not necessarily profit, and the exact financial performance has not been independently verified here.
But to attract new customers, you need to improvise which we have done with our fusion green tea and chaipuccino (call it the tea’s version of cappuccino),” Sanjith said. The journey, however, began with a decision that left his family worried. Sanjith left his studies at La Trobe University in Melbourne to pursue entrepreneurship. Instead of continuing along the conventional path of completing his degree and looking for a job, he decided to build a business around something he had been fascinated by since childhood. Their first outlet opened on Elizabeth Street in Melbourne, taking Indian tea into a market where coffee was already deeply established. The idea was simple, but making it work required patience, experimentation and an understanding of what customers wanted. The team began with just five varieties of chai and initially struggled to attract customers. Rather than giving up, they continued refining their offerings and exploring ways to introduce the beverage to a wider audience. For Sanjith, the business was about more than selling a cup of tea. It was also an attempt to introduce customers to a familiar part of Indian food culture in a new setting. “I was fascinated about tea from childhood and then conceived the idea of Dropout Chaiwala. My parents were initially shocked that I had dropped out and then apprehensive that I am planning my own business venture. Melbourne is the world’s coffee capital and I was planning to open a tea joint,” he was quoted as saying by The Times of India. As the business developed, the team realised that reaching customers beyond the shop could help them grow. This allowed them to take their products directly to gatherings where people could discover Indian chai without visiting the original outlet. They also expanded the menu beyond traditional tea, adding snacks and experimenting with fusion drinks. Bombay Cutting emerged as a favourite among members of the Indian community, while Australian customers reportedly took to Indian masala chai and pakodas. “Among the Indian community, the Bombay Cutting is a big hit and the Australians love Indian masala chai and pakodas. The introduction of new flavours helped the business appeal to customers with different tastes. The chaipuccino, a tea-based take on cappuccino, reflected the founders’ attempt to combine the familiarity of chai with a format that coffee drinkers might recognise. The venture also created employment opportunities. He places importance on passion, hard work and the willingness to learn. For him, a person’s attitude and ability to improve can matter as much as academic credentials in a workplace.
The business’s growth has also changed how his family views his decision. they are now reportedly proud of what he has built from a relatively small idea Although his parents were initially concerned when he left university. Sanjith’s experience, however, has not made him encourage every student to abandon their education. He has advised young people to think carefully before leaving their studies, especially when they have spent a significant amount of money to study abroad. His own journey, he suggests, should not be treated as a formula that everyone can follow.
Looking ahead, he hopes to open at least one outlet in every city across Australia. Whether that ambition is achieved will depend on the business’s ability to maintain quality, understand local tastes and manage expansion. For now, Dropout Chaiwala’s story shows how a familiar Indian drink found an audience in an unexpected market. It also highlights the work behind turning an idea into a business: starting small, listening to customers, trying new products and adapting when the first approach does not work. You use AI every day. Now get your AI Quotient. Take the AIQ test Get the latest Lifestyle News and more. Download the TOI app.