Biryani By Kilo, a delivery-focussed restaurant chain, has raised Rs 30 crore ($4.3 million) in its Series A round of funding led by venture capital firm IvyCap Ventures.
The restaurant chain, which is operated by Gurugram-based Sky Gate Hospitality Pvt. Ltd, will use the capital mainly to expand its geographical presence across western and northern parts of the country, as per a press statement.
“There is a tremendous opportunity for emergence of pan-India biryani-focussed chains, along with room for expansion into international markets,” said Vikram Gupta, founder at IvyCap Ventures.
Biryani By Kilo was founded by Kaushik Roy in May 2015. Vishal Jindal joined as a co-founder the following year. It raised pre-Series A funding from a clutch of investors in November 2017.
The company operates 20 outlets operational across Delhi-NCR, Mumbai, Chandigarh, Mohali and Ludhiana. It operates on a hub-and-spoke model, providing raw material and semi-cooked produce to its outlets.
The startup prepares different types of biryani using handmade earthenware. It also offers kebabs, korma and breads.
It posted net sales of Rs 12 crore for 2017-18 as against Rs 4 crore the year before, as per VCCEdge, the financial data platform of Mosaic Digital. The company is yet to achieve operational break-even.
Deals in the restaurant segment
A number of biryani-focussed restaurant chains are backed by institutional investors. For instance, Hyderabad-based Paradise Food Court is funded by Samara Capital while Mani’s DumBiryani in Bengaluru counts Navlok Ventures as an investor.
Last month, homegrown private equity firm CX Partners was reported to be picking up a majority stake in Tamil Nadu-based biryani chain Thalappakatti Hotels Pvt. Ltd.
Gurugram-based Biryani Blues had raised a bridge round of funding from Carpediem Capital Partners and other investors in 2016.
The first reported institutional investment in the biryani restaurants segment was made by SAIF Partners in 2012 when it backed TMA Hospitality Services Pvt. Ltd, which owns the Ammi’s Biryani chain. VCCircle reported last year that SAIF was looking to sell its entire stake in the company.