Devyani International To Pick Up Majority Stake In Biryani By Kilo

SUMMARY

Devyani International said in an exchange filing that its board has proposed to approve the definitive agreement and issuance of equity shares payable for the acquisition

The financial details of the deal was not disclosed

The development comes after Biryani By Kilo raised $2 Mn from Dubai-based investment firm Pulsar Capital

Devyani International, which runs QSR chains such as KFC via franchise agreements, is set to pick up controlling stakes in cloud kitchen startup Biryani By Kilo.

However, the financial details of the deal have not been disclosed.

Devyani said in an exchange filing that its board will meet on April 24 to consider and approve the definitive agreement and issuance of equity shares payable for the acquisition.

The filing further said that the issuance of equity shares shall be subject for approval at an extraordinary general meeting of the company.

The development comes almost five months after Biryani By Kilo raised $2 Mn from Dubai-based investment firm Pulsar Capital. According to Inc42’s calculations, the startup was valued at $100 Mn at the time of the fundraise.

Founded in 2015 by Vishal Jindal and Kaushik Roy, Biryani By Kilo is popularly known for its biryanis and also sells kebabs, kormas, and desserts to its customers. It counts the likes of Falcon Edge Capital, IvyCap Ventures, among others, as its investors and has raised $52 Mn till date.

The Delhi NCR-based startup has 100 outlets in the country and enjoys presence in some of the major cities such as Bengaluru, Hyderabad, Kolkata and Delhi-NCR. Besides, it also delivers to its customers in 45 cities.

The startup was able to cut its net losses by 30% to INR 70.81 Cr in the financial year ended March 31, 2024 (FY24) from INR100.7 Cr in the previous fiscal year. The IvyCap Ventures-backed startup was able to trim its losses on the back of a 23% rise in its revenue from operations to INR 268.30 Cr recorded for the period under review from INR 218.10 Cr in FY23.

On the other hand, founded in 1991, Devyani International claims to have a network of more than 2,000 restaurants across India, Thailand, Nigeria and Nepal.

The acquisition of Biryani By Kilo is further likely to boost the offerings of the QSR brand.

While Biryani By Kilo is on its way to sell majority stakes to Devyani International, the owner of Behrouz Biryani Rebel Foods raised $25 Mn (around INR 212.71 Cr) from Qatar Investment Authority. Reportedly, it raised its funding at a valuation of $1.4 Bn. The startup is also gearing up for its public listing in FY26.

Notable players such as Taco Bell franchisee owner Sapphire Foods, Rebel Foods and Wow! Momo are competing to grab their share in India’s quick commerce market which is projected to reach $43.5 Bn by 2030.