Whether it’s weekend gatherings with friends, a first date, or treating your family with your initial paycheck, Cafe Coffee Day used to be the go-to place where a few hours could transform into cherished memories. However, the shocking news of V G Siddhartha’s suicide in July 2019, the founder of India’s largest coffee shop chain, Cafe Coffee Day, cast a somber shadow over the nation. Siddhartha’s body was discovered on the riverbank after he jumped into the Netravati river near Mangalore.
During his final moments, Siddhartha instructed his driver to stop the car on a bridge, promising to return shortly. When he failed to reappear after an hour, the driver called him, only to find that Siddhartha’s phone was switched off. Panicking, the driver informed Siddhartha’s elder son, initiating a search operation.
Hailing from Karnataka, Siddhartha envisioned opening a coffee shop after observing the global coffee culture. Despite facing numerous challenges, the first Cafe Coffee Day opened its doors in 1996 at Brigade Road in Bangalore.
Siddhartha’s suicide was suspected to be linked to a debt crisis and business losses, as indicated by a typewritten note released by ANI. In the note, he apologized for “failing to create the right profitable business model” and cited unbearable pressure from private equity partners, lenders, and harassment from the income tax department.
Despite skepticism about the survival of Coffee Day after Siddhartha’s demise, Malavika Hegde, his wife, took over as CEO of Coffee Day Enterprises Ltd (CDEL) in December 2020. Facing a daunting debt of over Rs 7,000 crore in 2019, Malavika, a single mother of two, tirelessly worked to save CCD from disappearing.
Born in Bengaluru in 1969, Malavika Hegde, the daughter of former Karnataka Chief Minister SM Krishna, married V G Siddhartha in 1991. Before becoming CEO, she served as a non-board member of CDEL for several years.
In a letter to the company’s 25,000 employees in 2020, Hegde expressed her commitment to the company’s future, emphasizing that the Coffee Day story was “worth preserving.” Despite the challenges and grief, she vowed to reduce debt and grow the business.
Under Malavika Hegde’s leadership, CCD witnessed a miraculous recovery, reducing its debt during the COVID lockdown. Despite challenges, she worked towards settling debts, growing the business, and upholding Siddhartha’s legacy.
CDEL’s annual report in August last year revealed a substantial reduction in net debt to Rs 1,731 crore as of March 31, 2021, from Rs 7,200 crore in March 2019. Malavika’s goal is to transform CCD into a multi-billion dollar company without the burden of debt, expanding coffee day shops across the nation.
Currently, CCD operates 572 cafes and 333 CCD Value Express kiosks across the country, with over 36,000 vending machines serving coffee to customers. Despite the challenges, CCD continues to contribute significantly to consolidated net revenue, with logistics and other businesses complementing its success.