QSR chain Charcoal Eats Bags INR 45 Cr To Boost Distribution Network

Mumbai-based quick service restaurant chain Charcoal Eats has raised INR 45 Cr (around $ 5.3 Mn) in an undisclosed funding round led by healthcare company Paras Pharma’s founder Girish Patel. 

The round also saw participation from a host of angel investors, including Sanghvi Erectors’s chairman Anil Singhvi, Kinetic Group’s MD Ajinkya Firodia and former banker Rajiv Jain. 

The startup aims to use the fresh capital to boost its brand operations and expand its footprint across India and overseas.

Charcoal Eats’ cofounder Krishnakant Thakur said that apart from this, the proceeds will also be deployed for scaling up its distribution network and technology integration.

“We are expecting revenues to grow five times over the next two years. Coupled with a capex and opex light model, we aim to achieve exponential growth in a very capital-efficient manner. We are excited and optimistic to introduce our brands to more consumers and make their days more yummy-licious!,” he said.

Founded in 2015 by Thakur and Anurag Mehrotra, Charcoal Eats is a B2C food tech startup offering quick-service restaurant service via its app. The company operates brands such as Charcoal Eats for Biryani and B Burger across Mumbai, Pune and Delhi NCR.

It has around 40 outlets, mostly cloud kitchens, across Mumbai, Pune and Delhi-NCR.

In 2020, the startup raised INR 16 Cr in an undisclosed funding round led by Lokmat Investments, a division of multi-platform media company Lokmat Media.

It competes against the likes of Curefoods, Rebel Foods, Biryani By Kilo and FreshMenu in the cloud kitchen offering segment. 

India’s QSR chain space has been witnessing traction from investors lately.

For instance, last month, QSR chain BIGGUYS secured $2 Mn from a host of NRIs in a mix of equity and other instruments. Before that, WoW! Momos raised INR 70 Cr from homegrown investment firm Z3Partners. 

This comes at the heart of the QSR segment in India facing a decline owing to low demand, macroeconomic conditions, and lower consumer spending among others. 

According to brokerage BNP Paribas’ report, the revenue growth for listed QSR companies was down by 9% year-on-year in Q4 FY24, against an 18% increase in FY23 for the same quarter.

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