Tipping Mr Pink Pvt Ltd, the Gurgaon-based company that runs fast food chain Burger Singh, has raised Rs 3.2 crore ($500,000) in a bridge round of funding from a group of angle investors.
Indian Angel Network’s Ashvin Chadha, IDFC Ltd COO Avtar Monga, Udaan Angels and Dheeraj Jain, partner with UK-based hedge fund Redcliffe Capital, put money in the restaurant chain.
Burger Singh will use the funds to set up eight take-away and delivery outlets and two casual dining restaurants in Delhi-NCR. Currently, it operates four take-away joints in Gurgaon.
Kabirjeet Singh, the company’s founder, said he is in talks with a number of investors to raise an additional $1.5-2 million.
Several food ventures in India are trying to use an asset-light strategy anchored on home delivery and take-away services to grow their business. Many such startups, who style themselves as ‘food-tech’, have raised funding from angel and VC investors.
The burger business in India is dominated by McDonald’s. However, a number of its US counterparts have been trying to capture a slice of the market. While Johnny Rockets forayed into the Indian market last year, Wendy’s entered India earlier this year. Carl’s Jr, which recently raised an undisclosed amount in funding from cricketer Yuvraj Singh-backed early-stage investment firm YouWeCan Ventures, set up its first outlet, in Delhi, in August.
Two other chains trying to make a mark in the segment are Dunkin’ Donuts, run in India by Jubilant Foodworks that also runs the franchise of Domino’s in the country, and Burger King, which entered India last year as a joint venture with private equity firm Everstone’s restaurant platform.
Burger Singh, launched in November 2014, sells French fries, chicken wings, desserts and juices besides burgers. It has positioned its core product, the burger, as a premium offering compared to products dished out by McDonald’s and others.
Singh, an alumnus of Birmingham Business School, dismissed concerns that the firm’s brand is phonetically similar to US chain Burger King. “Our names may sound similar but we have a very distinct logo. We have a distinguished identity,” said Singh, who had earlier worked with beer café The Pint Room.
Burger Singh has nearly 40 employees, including six in the senior team. It plans to hire four to six more people at the senior level by the end of this year.
Startup Buddy Services acted as the sole financial advisor to the company for the fund-raising.