Welcoming The Boba Factory to the Genesis Portfolio
On behalf of Genesis, I am excited to announce our investment in The Boba Factory. The Boba Factory is building a bubble tea vending machine that prepares and dispenses freshly-made bubble tea drinks with high customization and easy accessibility.
The Problem
Accessibility to bubble tea lags far behind that of other similar drinks despite its rising popularity and loyal customers. While there are almost 32,000 coffee shops in the U.S., there are only approximately 1,000 bubble tea shops operating nationwide. Bubble tea is currently sold almost exclusively by bubble tea shops that operate at typical restaurant hours and are often located within shopping complexes in high population areas. Potential bubble tea customers who seek convenient access to drinks at late hours are often left unserved. Due to the time-sensitive nature of tapioca pearl preparation and consumption, the taste of bubble tea drinks purchased at shops may vary substantially based on the preparation process.
The Boba Factory team is building a vending machine that independently prepares bubble tea drinks on-demand with high customizability and consistency. The machine performs three main functions: tea brewing, boba preparation, and drink assembly. A drink can be ordered at the machine or online via an app, and customers can select options for tea type, flavor, and time of pickup. The machine will be operational 24/7, and all steps of drink preparation will be completely automated.
The Founders
Samraz Badruddin, Justin Tabarini, and Archik Raje are The Boba Factory founding team. They are current and former Mechanical Engineering students at UT Austin who have always loved boba tea. The trio had long considered how boba preparation could be automated, but their visions materialized when Samraz assembled a team to compete in the UT Austin Create-A-Thon in Spring 2019. Samraz, Justin, and Archik, along with a few engineering friends manufactured a proof-of-concept for their idea, winning Best of Showcase with this incredible prototype. From there, the team set out build a fully functional boba tea vending machine that could produce high-quality boba drinks at convenient times and locations.
Samraz Badruddin (Mechanical Engineering ’20) — Samraz serves as the CEO of The Boba Factory. He works in Texas Inventionworks and will be working at Exxon Mobil in Houston in the fall.
Justin Tabarini (Mechanical Engineering ’19) — Justin serves as the CTO of The Boba Factory. Justin graduated from UT Austin with a degree in Mechanical Engineering in Spring 2019. He currently works at MPR Associates in Alexandria, Virginia.
Archik Raje (Mechanical Engineering ’19) — Archik serves as the COO for The Boba Factory. Archik graduated from UT Austin with a degree in Mechanical Engineering in Spring 2019. He currently works at OneSubsea in Houston.
How’re They Doing?
The Boba Factory’s proof-of-concept for the UT Mechanical Engineering Create-a-Thon weekend successfully poured tea, added flavoring, and cooked tapioca pearls to prepare a bubble tea drink. Since then, the team developed CAD models for the three primary subsystems for the machine and identified the parts needed for each. The team is currently working on improving designs and manufacturing all three subsystems. The founders are considering several potential locations to test their first prototype, including the UT Austin campus. They have also performed surveys to gauge interest in their idea and collect customer data on flavor preference.
Why I Led This Deal by Mohit Gupta
When I first heard The Boba Factory team’s pitch to Genesis, the idea seemed lofty for a team of undergraduate engineers. Seeing their proof-of-concept from the Create-A-Thon competition quickly erased those doubts. Samraz, Justin, and Archik’s commitment to the venture was clear from the start, and they possess both the technical ability and strategic prowess to make their vision a reality. I am constantly impressed by the team’s rapid progress and thorough understanding of their product and market. The team embodies the entrepreneurial spirit and bold ambition that define Genesis portfolio companies, and I am excited to welcome them to the Genesis family.
