With this, Kitchens@ has become a subsidiary of Finnest and the investment firm will hold a 53.75% stake in the startup
The startup issued 40 Lakh equity shares at INR 3,000 apiece to the PE firm, translating to a total sum of INR 1,200 Cr
Kitchens@ halved its loss to INR 18.61 Cr in FY23, while operating revenue grew 67% YoY to INR 62 Cr
UK-based private equity (PE) firm Finnest has invested INR 1,335 Cr ($160 Mn) in Kitchens@ to acquire a majority stake in the cloud kitchen startup.
As per Registrar of Companies (RoC) filing accessed by Inc42, the startup issued 40 Lakh equity shares at INR 3,000 apiece to the PE firm. This translates to a total sum of INR 1,200 Cr ($145 Mn).
In addition, Ktchens@ also issued an additional 4.5 Lakh Series C compulsorily convertible preference shares (CCPS) amounting to INR 135 Cr ($16.1 Mn) to Finnest.
With this, Kitchens@ has become a subsidiary of Finnest and the investment firm will hold a 53.75% stake in the cloud kitchen startup.
The fresh capital will be utilised to fuel the startup’s business operations, working capital requirements, and expand its footprint.
The development was first reported by Entrackr. An Economic Times report noted that the startup raised the funds at a post-money valuation of $305 Mn, adding that the latest fundraise also included the $65 Mn investment by Finnest in the startup in December last year.
In December, Finnest infused the capital in Kitchens@’s Series C round. Back then, the startup said it raised the capital to expand its hybrid model Dinerium.
Founded in 2018 by Junaiz Kizhakkayil, Kitchens@ helps brands in setting up kitchens, hiring and training, brand development, online delivery, among others.
It currently has 700 cloud kitchens spanning six major cities, including Delhi, Bengaluru, Hyderabad, and Chennai. It commenced operations with initial seed capital from Zomato and then later bought back the shares from the foodtech major later in 2019.
Besides Finnest, the startup is also backed by the likes of Beenext and DG Ventures as its investors. It works with marquee names in the Indian quick service restaurant (QSR) chains such as Domino’s, Subway, Taco Bell, Nando’s, and Barbeque Nation.
Kitchens@’s net loss halved to INR 18.61 Cr in the financial year 2022-23 (FY23) from INR 37.24 Cr in the previous year. Operating revenue rose about 67% year-on-year (YoY) to INR 62 Cr.
