Biryani By Kilo (BBK) has successfully raised a substantial $9 million (INR 72 Cr) in its latest Series C funding round. The funding was spearheaded by Alpha Wave Ventures, and the round saw enthusiastic participation from Vevek Ventures, DSP HMK Holdings, IvyCap Ventures, Incred Wealth, and Clear Bridge Ventures, among other key contributors.
The cloud kitchen startup’s Board of Directors, as per regulatory filings with the Registrar of Companies, passed a special resolution to issue 18,086 Series C Compulsorily Convertible Preference Shares (CCPS) at an issue price of INR 39,800 per share to secure the substantial funding injection.
Despite attempts by Inc42 to gather comments from Biryani By Kilo regarding this development, no response has been received as of the filing of this report.
Alpha Wave Ventures took the lead by infusing a notable INR 28 Cr into the funding round, followed by investments from IvyCap Ventures, Incred Wealth, and Clear Bridge Ventures, contributing INR 16.5 Cr, INR 8.2 Cr, and INR 8.3 Cr, respectively. Post the successful funding, Alpha Wave Ventures is set to hold a significant 35.06% stake in the startup. Simultaneously, IvyCap Ventures, Incred Wealth, and Clear Bridge Ventures will secure stakes of 5.37%, 1.09%, and 1.10%, respectively. The promoter shareholding of Biryani By Kilo is expected to dilute from 19.14% to 17.31%, as indicated by the filing.
Founded in 2015 by Vishal Jindal and Kaushik Roy, Biryani By Kilo has carved a niche for itself by offering a diverse menu featuring biryanis, kebabs, kormas, and desserts. This funding injection follows closely on the heels of a successful Series B round, where the company raised $35 million in November 2021 from prominent investors such as Falcon Edge Capital, SBI, and IvyCap Ventures.
With a total funding tally surpassing $50 million, Biryani By Kilo boasts a robust presence with over 100 outlets strategically positioned across major cities in India, including Bengaluru, Hyderabad, Kolkata, and Delhi-NCR. The startup’s delivery services extend to more than 45 cities, putting it in direct competition with industry stalwarts such as Rebel Foods’ Behrouz Biryani and Biryani Blues, alongside local players like Potful and EatClub’s various brands.
In a strategic move last year, Biryani By Kilo expanded its portfolio by acquiring a majority stake in the healthy dessert startup Get-A-Way, making a preliminary investment of $2 million.
However, the company faces challenges on the financial front, with a notable increase in net loss, soaring to INR 42.6 Cr in the financial year 2021-22 (FY22), compared to INR 15.6 Cr in the preceding fiscal. This occurred against a backdrop of commendable revenue, reaching INR 135 Cr.
As India’s cloud kitchen market continues its upward trajectory, recently reaching $969.5 million in 2023, industry analysts predict further growth, projecting a market size of $2.94 billion by 2032. With this recent injection of funds, Biryani By Kilo is strategically positioned to capitalize on this market expansion, solidifying its stance as a key player in the burgeoning cloud kitchen segment.
