Delhi-based Azure Hospitality Pvt Ltd, which runs a pan-Asian casual dining chain under the Mamagoto brand, has secured $10 million (about Rs 64 crore) from global financial services giant Goldman Sachs to fuel its growth plans, according to a press release.
Last year, Azure’s co-founder Rahul Khanna had told VCCircle that the firm plans to raise close to Rs 50 crore and is looking to dilute around 15 per cent stake.
The company was started by Khanna along with Kabir Suri. It is backed by a London-based private investment firm Blue Sky Capital.
“This landmark investment for our company will allow us to aggressively execute our strategic expansion. Access to Goldman Sachs’ global network, insights and best practices will help strengthen our position in the Indian food & beverage (F&B) sector,” Suri said.
“Partnering with Goldman Sachs allows entrepreneurs like us make ambitious dreams match India’s consumer scale and tremendous market opportunity,” said Khanna.
The company launched two budget brands – Rollmaal and Speedy Chow – in 2013 to diversify the business. Both are QSR chains with Speedy Chow focusing on Chinese cuisine and Rollmaal being an Indian food brand.
At present the firm has nine outlets under Mamagoto and five each under the two newer brands.
It operates in Delhi-NCR, Mumbai and Bengaluru and employs 700 people. It is also looking to expand to tier I and II towns.
During the last five years, all three brands have grown revenue by over 50 per cent year on year, according to the release. The company also operates a catering brand ‘Mamapaati’.
The restaurant chain is also mulling to foray into the overseas market and mark its presence in UAE within a year.
Goldman Sachs is an active investor in India and has deployed more than $2 billion in the country since 2006. Globally, Goldman Sachs has invested over $8.1 billion in the consumer sector spread across more than 15 companies, including Global Consumer Products in India.
“We are believers in consumption growth in India. Goldman Sachs continues to back high quality, local entrepreneurs to build large businesses based on this investment theme. Through this most recent partnership with Azure, we intend to leverage our global expertise in the sector to help create a large, differentiated leader in India’s rapidly growing F&B industry,” Ankur Sahu, co-head of private equity in Asia at Goldman Sachs, said.
The Indian food-service industry is projected to grow to $78 billion by 2018 from its current $48 billion, which is a compounded annual growth rate of 11 per cent, according to consultancy firm Technopak Advisors.