Big Fish Ventures plans to raise Rs 200 crore of venture capital funding to open new outlets over the next couple of years, top officials said.Big Fish Ventures, a Delhi-based startup that runs premium dining lounges such as Vault Cafe and GaramDharam in the capital, plans to raise Rs 200 crore of venture capital funding to open new outlets over the next couple of years,as per a top official.
Founded by hospitality sector veteran Umang Tewari this year, Big Fish Ventures will launch restaurant brands in the casual dining space, cafes and lounges, under names such as Public Connection, Oh My God (OMG), Junkyard and Three Peg Down by next quarter. "Most firms are focused on creating single brands with standardised formats like, for example, a McDonald's or a KFC. We are building a cluster of concept--based different brands across genres and large formats," Tewari told ET.
He said the firm hoped to record sales of Rs 50 crore this fiscal year. Big Fish has roped in Nishant Singhal, cofounder of startup venture fund YouWeCan Ventures along with cricketer Yuvraj Singh, as its chief mentor. Singhal, who has picked up a minority stake in Big Fish, said, "We wanted to create an investment vehicle across cuisines and concepts in the restaurant and eating out space."
He said funds of Rs 50-60 crore for the first eight stores are already in place and that Big Fish intends to be operating 8-10 large format stores of 5,000-8,000 square feet by the year end.
Big Fish, which has roped in some minority investors including high net worth individuals, will steer clear of franchisees, he said. Singhal said the venture will centrally manage key business processes like design, supply chain, logistics and quality control to optimise costs.
Restaurant industry in India has already attracted private equity investments of $100 million, or about Rs 649 crore, so far this year, according to industry data. In 2014, the industry had got $128 million through 14 deals.
Recent deals include the F&B arm of Everstone Capital picking up 50% stake in restaurateur Zorawar Kalra-owned Massive Restaurants; Haresh Chawla, partner at India Value Fund Advisors, acquiring controlling stake in chef Rahul Akerkar-founded deGustibus Hospitality for close to Rs 190 crore; Goldman Sachs investing Rs 64 crore in promoter of pan-Asian restaurant chain Mamagoto; and a consortium of investors led by Samara Capital acquiring the south and west India franchise operation of Pizza Hut from the Dubai-based Dodsal group for close to Rs 200 crore.