This video is about "Why MBA Chai Wala Failed? 🔥 Case Study | Failed Business Model | Prafull Billore | " MBA Chaiwala, who rose to fame for his entrepreneurial success story, was accused of cheating by a group of youths who claim that he took lakhs of rupees from them for franchisee but failed to deliver on his promises. The biggest failure of MBA Chaiwala is that they do not belong to the basic structure of professional franchise business, only use the fame of name.
MBA Chaiwala, a popular tea-selling brand with franchises across Indian cities, was founded by Prafull Billore, starting from a humble tea stall in Ahmedabad, Gujarat. However, recent controversy surrounds Billore as allegations of fraud have emerged against him and his team. Multiple complaints have been filed, claiming that individuals were falsely promised profitable franchises, but the businesses failed, resulting in the closure of outlets.
Prafull Billore, despite not completing his MBA and starting as a chaiwala, established a successful tea business that grew into a significant brand through his relentless efforts. He is also known as an inspirational speaker and entertainer.
According to reports, a complaint was lodged against MBA Chaiwala (Prafull Billore) on April 4, 2023, at Lasudia Police Station in Indore. The complainant, Ashish Tiwari, alleges that he paid 10 lakhs for a franchise and was promised daily sales of Rs ten thousand. However, his actual sales amounted to only 600 rupees per day.
Several complaints have been registered against Prafull Billore, including 28 in Indore alone, involving locations such as Vijay Nagar, MIG, Palasia, Lasudia, Bhanwarkua, and South Tukoganj. Tanmay Chokse, a franchise owner in Bhanwarkua, invested 32 lakhs but had to close down the business due to losses.
Tanmay claims that he contacted Prafull Billore and others to open the outlet. People associated with Billore deposited Rs. 13 lakh into the company's account for franchising. Additionally, Tanmay invested Rs. 27 lakh in interior design and other expenses. Despite promises of significant monthly earnings, Tanmay experienced losses ranging from Rs. 200,000 to 600,000 per month. When he reached out to the company for support, they did not provide any assistance, leading to allegations of fraud.
Another franchise owner, Vineet Rai from Lucknow, invested 20 lakhs but also had to close down his outlet. Vineet alleges that he was misled into believing that the company would provide support and run the outlet effectively. However, no such assistance was given, and he suffered losses.
Multiple outlets in Indore reported similar losses and subsequently closed down. Franchise owners are demanding compensation and a refund of the deposits they made to MBA Chaiwala. It is alleged that large sums of money were taken from these individuals under the guise of franchise fees, equipment costs, and raw material expenses, leaving the franchises in significant financial distress.