The cloud kitchen will focus on increasing its presence in tier 2 and tier 3 cities
The funds will be deployed over a period of six months
Grip provides a lease finance platform where investors can purchase and lease assets to companies
Gurugram-based asset backed investments digital platform Grip Invest has entered into a $2 Mn lease financing deal with cloud kitchen startup Big Spoon.
“Grip plans to enable Big Spoon in capitalising on alternative revenue streams, allowing the cloud kitchen startup to scale its operations,” said a statement from Grip.
Lease financing is a medium and long-term financing route wherein the owner of an asset gives the lessee the right to use that asset against periodical payments.
Kapil Mathrani, founder & CEO, Big Spoon, said that with this partnership, the startup can focus on increasing its presence in tier 2 and tier 3 cities which have lower brand affinity.
“We plan to unlock the next phase of growth and further become more agile,” he added.
Speaking to Inc42, Nikhil Aggarwal, founder & CEO, Grip Invest said that the funds will be deployed over a period of six months.
“Cloud kitchens are one of the fastest growing segments in India, with reports projecting a revenue growth of $2000 million by 2024. Lease Financing couldn’t be more important. It can meet different forms of capital requirements and unlock potential growth,” he said.
The Ahmedabad-based cloud kitchen startup operates 80 internet restaurants and has a presence across 15 cities with 21 outlets. It offers 11 different brands including Makhni, Oven and Grill, Meals 101, Monkey Fries, The Wrap Co and East Pizza Co.
Founded in June 2020 by Nikhil Aggarwal and Vivek Gulati, Grip offers the investment option of leasing assets to several industry players including Udaan, Stanza Living, Furlenco, Bounce, Blue Tokai, Everest Fleet, IPLElectric, FabAlley and LetsTransport. So far, the platform has facilitated leasing of assets worth over INR 125 Cr.
It provides a lease finance platform where investors can purchase and lease assets to companies, providing them an additional investment instrument while enabling companies to grow faster by converting capital expenditure to operational expenditure.
The statement from Grip said that the investors can invest as minimum as INR 20,000 for 24 months and expect to earn an internal rate of return (IRR) of over 21%.
In August, the asset backed investments digital platform raised INR 21 Cr ($3 Mn) in its Series A round led by Venture Highway and Endiya Partners.