How Hatti Kaapi Took South Indian Filter Coffee Global

The timing aligns with a broader consumer shift India’s domestic coffee consumption touched approximately 91,000 tonnes in 2023, and the café market, valued at USD 380.8 million in 2024, continues to grow at double-digit rates. “When we opened in Bengaluru’s Gandhi Bazaar in 2009, it was a 30-square-foot shop serving 3,000 cups a day,” recalled US Mahender, Founder, Director and CEO of Hatti Kaapi. “That little store propelled us to scale, and we didn’t look back.”

Sixteen years later, the South Indian filter coffee, has become a global talking point. And one of the brands most responsible for taking filter coffee into the mainstream café market. “For Hatti Kaapi, the timing couldn’t be better,” Mahender shared. Excerpts:

How it Began
Mahender credits his coffee instincts to his roots. “We come from Hassan, a coffee-growing region in Karnataka and coffee is in our DNA” he said. He and co-founder ML Gowdaji hail from families deeply tied to the Western Ghats plantation belt, like Coorg, Chikkamagaluru and Hassan, regions that produce nearly 90 per cent of India’s coffee.

After years spent trading coffee, Mahender felt the need to build something of his own and for his late VG Siddhartha, the visionary behind Café Coffee Day was the inspiration. “He brought change to the Indian coffee industry. But Café Coffee Day focused on the western version of coffee. I grew up with filter coffee. So, we thought, let us offer something affordable and true to our palate,” he added.

That decision to make an authentic, milk-based South Indian filter coffee scalable shaped the brand.

Hatti Kaapi’s Growth Story
The next turning point came when Bengaluru Airport offered them a space. The store became a landmark. Today Hatti Kaapi brews 2,000-2,500 cups a day at the Bengaluru airport alone. 

With Kempegowda Airport crossing 31.9 million passengers in FY23, this strategic placement amplified brand visibility exponentially. The airport model was soon replicated in Chennai, Hyderabad, Kolkata, Delhi, and Mumbai. Hatti Kaapi intentionally adopted a multi-touchpoint model, ensuring consumers encounter the brand across daily routines at airports, IT parks, malls, hospitals, hotels, and corporate events. While the brand stays loyal to filter coffee as its identity, Hatti Kaapi has expanded its café format.

"We’ve learned from global formats: while Starbucks sells an Americano, we focus on offering the best Indian coffee experience. We use quality machines and techniques but the heart of our menu is true Indian filter coffee” he pointed. 

With growing demand, the brand’s model has also evolved its food menu, including mini idlis, Maddur vadas, rice rotis, upmas, croissants, vada pavs, and more. This positioning resonates in cosmopolitan cities where consumers expect native flavours alongside café culture. In line with this growth, the brand is also expanding into major metro markets, with new stores opening soon in Delhi, Chandigarh, Mumbai, Pune and Hyderabad.

Rising Coffee Demand
India may be a traditionally tea-dominant country, but the coffee wave is rising, particularly among Gen Z and millennials.

“Earlier, coffee was a luxury. Now it’s a statement” said Mahender adding “Today’s generation prefers coffee destinations to work from Cafe as the new workspace.” South Indian filter coffee recently secured the No. 2 position on TasteAtlas’ list of the Top 38 Coffees in the World an acknowledgment that mirrors the rising popularity of India’s homegrown brew.

Global supply disruptions in Brazil and Vietnam have raised prices internationally, indirectly boosting Indian growers who are now earning their best rates in recent years. Meanwhile, India’s annual coffee exports continue to stay strong between USD 1–1.2 billion.

“Looking ahead five years, every year is exciting. If domestic consumption rises from 40% to even 60%, it will be a great win” Mahender mentioned for whom the next goal is to expand its presence into Tier-2 and 3 cities across India. “We want to move into tier-three towns and villages, put up small touch shops, give people a job or a franchise. They deserve a quality cup of coffee too ” Mahender pointed.

Growing Global Presence
Hatti Kaapi already brews in London, and upcoming locations include Amsterdam, the United States, Dubai and other parts of Europe. “The brand of Karnataka started from serving Rs 5 filter coffee at 5 AM and now we have touchpoints across cities and countries. It’s a proud moment for us ” Mahender proudly shared by adding that he believe Indian coffee has a unique flavour that isn’t always claimed on the global stage, even though many international brands buy Indian beans. 

"The time has come to say Indian coffee is among the best. We’re seeing international interest, brands coming to India and opening stores here which shows strong potential for coffee. “Our mission is to offer true Indian filter coffee everywhere” he asserted.