Against the backdrop of a successfully concluded IPO of JP Morgan-backed Jubilant Foodworks, venture capital investors continue to place bets on the QSR (Quick Service Restaurant) space.
Mast Kalandar, a home grown Indian QSR, has secured series B investment from Helion Venture Partners, Series A backer Footprint Ventures and Salarpuria Group, an angel investor into the company.
This is the second investment of Helion Ventures in the QSR space. In 2009, the VC firm invested $1.9 million into Brand Calculus Frachising India Pvt Ltd.
In 2008, Footprint Ventures invested in the Series A Round of the company. Headquartered in Kolkata, the Salarpuria Group is a diversified industrial group dealing in construction, architecture, real estate, construction management, facility and infrastructure management and finance. Back in 2006, the group angel invested the quick service restaurant chain.
Apart from providing capital, the group also provides strategic support by providing the QSR chain with preferred real estate avenues for opening of restaurants. Apurva Salarpuria, Director, Salarpuria Group is on the board of the company.
According to Gaurav Jain, promoter, Mast Kalandar, the current round of financing is a “significant step up from the earlier round.” Jain declined to share details on valuation or the quantum of money raised.
The company will utilize the monies to expand to a 100-store chain by 2012. It is currently focused in the cities of Hyderabad, Bangalore and Chennai and will look to target metros Delhi and Mumbai. Jain said that they will stick to the value-for-money dining approach in future.
Mast Kalandar is a North Indian quick service restaurant chain, owned by Spring Leaf Retail Pvt Ltd, promoted by Gaurav Jain and Pallavi Gupta. Started in 2005, Mast Kalandar hinges on the value for money dining, providing meal combos priced between Rs 55 and Rs. 125.
Betting big on the eating habits of Indians, there have been quite a few investments in the QSR space. Matrix Partners invested in Yo! China while Accel Partners invested in Kaati Zone, a Bangalore based quick service restaurant chain.
According to industry reports, QSR numbers are increasing by 30 to 35% per annum throughout the country. Two-income families and larger disposable incomes in India have generated demand for different types of food services, and are key drivers to the quick service formats.