Cloud kitchen brand Biryani By Kilo (BBK) has raised $35 Mn in a Series B funding round led by Falcon Edge Capital, with participation from SBI and existing investor IvyCap Ventures.
Founded in 2015, Gurugram-based Biryani By Kilo is a cloud kitchen brand that sells biryanis, kebabs, kormas and desserts to over two million customers through their 60 outlets spread over 25 cities. It clocks annual revenues of INR 150 Cr.
The brand is planning to utilise the fresh infusion of capital to materialise its national and international expansion plans.
“Biryani is the most popular dish in the country, but there is a dearth of quality brands. Right from the start, we have been clear in our vision, to provide 100% fresh Handi Biryani to our customers made with authentic recipes at affordable prices. This capital will allow us to accelerate our journey, while retaining our focus on quality, freshness and customer delight,” said Kaushik Roy, the founder of BBK.
The global online food delivery market is estimated to be worth $113 Bn in 2020. In India, this market was pegged at $4.46 Bn in 2020 and has been one of the fastest-growing sectors, attracting a lot of investment. The segment is projected to grow to $21.31 Bn by 2026, with a CAGR of 28.95%.
During the lockdown period, the cloud kitchen brand had distributed food to stranded migrant workers, as part of its project “Thali Initiative”.
“BBK has built a strong brand with a scalable business model and best-in-class unit economics. We are excited to partner with Kaushik and Vishal, and support them in their journey to build India’s most loved biryani brand,” said Navroz Udwadia, cofounder and partner Falcon Edge.
The restaurant industry was badly hit during the pandemic period when people stopped dining out. According to the National Restaurant Association of India (NRAI), the industry reported a 53% decline in business with the market size shrinking from INR 4.2 Tn in FY20 to INR 2 Tn in FY21.
In FY22, the food services industry in the country is projected to reach more than 85% pre-covid estimates.