India's version of Starbucks is set for explosive growth

Cafe Coffee Day has more locations than Starbucks in India - and it plans to grow even larger.

Coffee Day Enterprises Ltd., which owns Cafe Coffee Day, is rumored to be filing for an IPO worth $1 billion, according to Forbes.

Starbucks holds a market cap of $70.9 billion, according to Forbes, but Starbucks' presence in India is virtually nonexistent in comparison to CCD.

"The self-proclaimed 'pioneer of the cafe culture' in India, it has more than 1,500 cafes in 200 cities and towns across the country, including 191 in Bangalore and 185 in Delhi. Starbucks, meanwhile, has just 71", according to Quartz.

Starbucks only moved into India in 2012, giving CCD a considerable advantage.

V. G. Siddhartha opened Cafe Coffee Day in 1996 in Bangalore, India, and since then the company has flourished, expanding across India and into Austria, Malaysia, and the Czech Republic.

The company has also delved into e-commerce with its shoppable site for different types of coffee beans, machines, and assorted mugs.

The success of the Siddhartha's coffee subsidiaries can easily be attributed to the popularity of coffee houses with the younger demographic in India, according to Forbes.

Teens see these cafes as areas to hang out with friends and relax.