Gabru Di Chaap Grabs a Deal of ₹1.4 Crore for 6% Equity, With 1% Royalty 

Started by mother-daughter duo; Tina and Simran Bapu in the year 2020, Paleoo Bakes has 80 SKUS. The best-selling products are Hazelnut Crunch Cake, Banana Walnut Teacake and cookies.

The Brand Journey

The journey of Paleoo started as the brand had their vision to make healthy desserts with healthy ingredients. The goal is to replace maida with almond flour and sugar with stevia and to make healthy, grain-free, gluten-free and sugar-free desserts. The brand is available on all 365 days, and they complete 2,000 orders every month.

About the Founders

Tina was a baker and teacher by profession, on the other hand Simran is a graduate in nutrition and dietetics. Having worked in hospitals and clinic, she knew that even diabetic people crave to have healthy desserts, so, she thought of coming up with an alternative.

The Shark Tank Pitch

Simran and Tina’s pitch impressed the sharks. They even bought the cakes and desserts for tasting for the sharks. The sharks were amazed by the taste and quantity as there are no carbs and sugar in it but was bit concerned when it came to pricing as they felt the pricing is quite high. They asked Rs 1 crore for 6.5% equity.

The Numbers Behind Paleoo’s Growth:

The brand has been growing tremendously without any marketing over the years. But three months back, they have hired an agency to promote them via performance marketing and ads. The financials are as follows:

• FY 21-22 is 9 lakhs
• FY22-23 is 33 lakhs
• FY23-24 is 95 lakhs
• FY 24-25 (Till oct last year) is 1.5 crore

The price for half kg cake is Rs 1350, while the price for jar cake is Rs 500. The brand gets more orders through Instagram. In Kapil Sharma Show, Badshah and Shilpa Shetty has promoted the brand via word of mouth during a conversation. Simran said, “We never paid them to promote our brand. It’s the quality that is leading to unpaid promotions.”

The Shark’s Offer

The judges praised Tina and Simran's commitment and were impressed by the desserts' taste. Excited by the pitch, Anupam and Vineeta teamed up to offer Rs 1 crore for 10% equity and a 1% royalty until the investment was repaid. Peyush first made a similar offer but later removed the royalty condition to make his deal more appealing, which caused the founders to consider their options, but he insisted that they make a decision quickly or else he would withdraw from the deal if they took too long.

Anupam Mittal and Vineeta revised the offer for Rs 1 crore for 6% equity and 1% royalties.

The Winning Deal

After lengthy discussions, Simran and Tina Bapu agreed to go with Anupam and Vineeta’s offer, which will enable them to expand their company.

Ever tried sauces which is chemical-free, no preservatives and no refined sugar in it and healthy as well, that’s amazing right? Meet the 23-yr-old entrepreneur Isha Jhawar from Dhamtari, a small-town in Chattisgarh. 

Founded in 2022, Isha launched the variety of sauces in October 2024 in the market. They mainly sell their products in Amazon and through their website.

How the Journey started?
Isha Jhawar, age 23, dazzled the sharks with her 60-second presentation when she boldly entered the Shark Tank India 4 pitch. Isha, who founded the vegan sauce company Repeat Gud, referred to herself as the "Chief Everything Officer" when she outlined her goal to transform condiments with healthier substitutes. 

Isha was studying for her exams in Kota, when the food in Kota is of high-spice level. So, to minimise the spice she was relied on sauces and mayos. This ultimately led her to weight gain and kidney stones, and she was landed in hospital. She said that the health issues motivated her to develop wholesome sauces. Her ask was 50 lakhs for 5% equity.

The Brand Introduction
Repeat Gud was founded in 2022, the products were launched in August 2024. Isha has done 172 trials before launching the brand in the market. The manufacturing unit is in Dhamtiri, while she operates from the Chhattisgarh office. With only few SKUs on board, the brand is set to revolutionize the condiments segment.

The brand offers Pizza/pasta sauce, Mayonnaise (made of cashew milk), Tandoori mayo, Tomato ketchup, Imli and date sauce. They make products from gud (jaggery). The brand is yet to be launched in offline stores and in other online platforms.

The Shark Tank Pitch
With a faith in the potential of her business, Isha said, "Sir, we will make Repeat Gud the 'Veeba of healthy sauces.'" Isha was unfazed by Namita's criticism of the expensive pricing and comparison to Veeba. She assertively stated, "Veeba is not my competitor," refusing to back down. 

The Sharks’ Reaction After Tasting
The Sharks were impressed by the taste and quality of the sauces. They pointed out to have FSSAI labels as per FSSAI font size to avoid legal issues. The sharks advised her to add the mayo name as cashew mayo to attract more customers.

The Financials of RepeatGud
Isha has invested around 28 lakhs for building the brand. Her dad is also a shareholder as he has helped with the investment. The last 4-month sales are as follows:
•    August 2024 – Rs 22,000
•    September – Rs 53,000
•    October – Rs 47,000
•    November – Rs 1.4 lakhs
She mentions, “The Cogs is 25%, Channel margin is 40%, Ad spent is 42%, while the Salary to remote team is 56%.”

The Winning Deal
All the Sharks advised her to improve the branding and work on detailing. While Viraj gave his number to connect with him to improve the product detailing.

Unlike others, Anupam Mittal offered ₹50 lakh for 10% equity, provided that Isha achieves a monthly revenue run rate of ₹7 lakh by March 25. He would invest an extra ₹50 lakh for an extra 10% equity if she succeeded.  Isha was apprehensive at first, but she pushed back, asking what would happen if she went over the limit. Anupam responded by changing his offer, saying that, contingent on her performance, he would accept 5–10% of the second tranche's equity. And she agreed to the deal.

A New Journey with the Shark
With Anupam on board, the brand is set to bring the healthier sauces in this segment. Anupam adds, “We will focus on the main sauces with is already existing, before we come up with more SKU’S. In this way, we can broaden our space in the online segment and build a good brand for the consumers.”
 

Boba Tea brands are booming in India with a higher pace. With rise of K-dramas and international brands venturing in Indian markets, Boba Tea has attracted the young generations. 

Founded in October 2023, Boba Bhai is a QSR brand with 40+ outlets across 4 cities which includes Hyderabad, Chennai, Bangalore and Delhi (NCR). Started by Dhruv Kohli, the brand offers bubble teas, Korean burgers and K-pop ice-creams. Currently, the brand offers 15 SKUs in bubble tea, 15 varieties in burger and 7 varieties in ice-creams.

“We make everything in India. We have Indianized the classic flavours of bubble tea and burgers. We have launched Desi flavours like Jamun kala Khatta, Desi Guava and Tangy Kokum,” says Kohli whose vision is to make Boba Bhai India’s fastest growing QSR brand.

About The Founder
Dhruv was born in Jalandhar, Punjab. He was 8years old when his family moved to Australia. He did his schooling and college from there. At the age of 18, he started his first startup business of cricket sports goods. 

“We would import sports goods from India and sell them online in Australia. We made 150 dollars in profit. It was 12 years back. I pursued Bachelor of Business, Finance and Marketing, and got 100 thousand dollars in scholarship. In 2019, I worked with my co-founder; we started selling snacks in Uber cars and that’s when we returned to India and signed contracts with Uber.”

The Shark Tank Pitch
Dhruv compelling pitch about his varied experiences impressed the sharks. The brand is targeting Gen-Z and millenials for the products.

With a 166 crore valuation for his business, Dhruv asked for ₹50 lakh for 0.3% equity. NamitaThapar was taken aback by the valuation and said, "Main shock ho gayi aapka valuation dekhke."

The Sharks Reaction After the Menu Tasting
The Sharks were thrilled about the bubble tea tastes, but they weren't as thrilled about the Korean-style burgers. "If you want it so spicy, then keep biting on chilies," said Anupam Mittal, who found the spiciness difficult to handle. Aman defended the degree of spiciness, saying that Korean food is inherently spicy, although he didn't think the burgers were particularly noteworthy.

Food business veteran Viraj Bahl noted that spicy Korean noodles are gaining popularity in India, particularly among Generation Z. Anupam, however, wasn't persuaded and referred to Korean cuisine as a "fad." "My daughter loves this drink," he said, in spite of this.

Dhruv also unveiled a brand-new line of ice creams to counterbalance the spiciness. The Sharks were impressed by this action, which prompted an investment negotiation.

Meanwhile, Namita complimented the brand about their packaging, design, brand logo which brings uniqueness and creativity.

The Financials of Boba Bhai
The Sharks were impressed with the growth of the brand. Boba Bhai had a thrilling start since its launch. In the first month Oct 2023, the brand earned a whooping revenue of 40 lakhs and in November 2023, they earned 60 lakhs. The brand gets 15% business in dine-in and 85% in takeaways.

The Financials are as follows:
FY 23-24 closed at 5.2 crores (6months from Oct to MARCH)

FY24-25 17 CRORES (Till nov) (Projected 30cr) Burn of 30 lakh per month

He added that Vice President Operations takes 42 lakhs per annum, while Dhruv takes 2.5 lakhs per month. 

Funding Raised
The first round of funding was done in November 2023 for 10 crores, post money valuation is 40 crores. Kunal has invested 3 crores during that round. In the second round of funding in July 2024, 30 crores were raised for 110 crores valuation, when revenue was 1.7 crores. The investors are 8i fund, Titan Capital Winners fund, Global growth capital and DevC Matrix.

The Winning Deal
Together, Namita and Viraj offered Rs 90 lakh in exchange for 1% stake and a 0.5% royalty until the remaining Rs 45 lakh was recovered. After a back and forth, Dhruv accepted their initial offer after countering with Rs 1.2 crore for 1% stake.

A New Chapter with the Sharks

With Two Sharks on board, Boba bhai is set to revolutionise the segment with new innovations and global expansion plans.

Sharing about his excitement, Dhruv Kohli, Founder, Boba Bhai, adds, “Shark Tank India was an incredible platform to showcase Boba Bhai’s journey. Our goal is to bring high-quality, innovative food and beverage experiences to more people while staying true to our roots of great taste and community-driven values. This investment will help us scale operations, introduce new flavours, and bring the joy of Korean fusion food to even more people across India. We Indianize Korean flavours – Korean culture is increasing in influence, and we aim to make it accessible and enjoyable for Indian audiences.”

Have you ever imagined if there are any new age cloud kitchen brand which revolutionizes the food industry? Now, turn your imagination into a reality with ‘Speed Kitchen’ which is a ‘Co-Working Cloud Kitchens’ also known as ‘Delivery only kitchens.’ Sounds interesting right?

The Speed Kitchen is a plug-and-play, fully hygienic, and ready-to-move-in model. It's open 24/7 and 365 days a year. It is a vibrant hub created in 2021 by the childhood friends Paurav Rastogi and Shamin Kapoor to support food entrepreneurs by providing infrastructure, licenses, and ready-to-use commercial cooking facilities. Let's explore Speed Kitchen's thrilling voyage and the Sharks' impression of the duo.

The Brand Mission
Speed Kitchen believes that its cutting-edge platform may assist food entrepreneurs in avoiding the usual difficulties of acquiring real estate, negotiating with landlords, obtaining licenses, and overseeing operational areas. Food brands can concentrate on providing quality meals and satisfying client experiences with Speed Kitchen since they don't have to bother about locating a kitchen or chasing down the licenses and authorities.

Meet the Founders
Paurav Rastogi's own experience in the food sector served as an inspiration for the launch of Speed Kitchen. After working for OYO for a while, Paurav has traveled a lot and learned about the challenges restaurant entrepreneurs face, especially finding a suitable space and negotiating the complicated leases. 

This made him want to find solutions to these issues, and he teamed up with Shamin Kapoor to start Speed Kitchen. They came up with the idea of a platform that would provide food entrepreneurs all the tools they need to operate a profitable cloud kitchen company. Shamin has an impressive background, having worked in Dubai and other places; he joined Paurav to build this venture.

Bringing Uniqueness in the Cloud Kitchens

As a co-working cloud kitchen, Speed Kitchen provides food brands with an adaptable and affordable means of starting and growing their businesses. The platform frees entrepreneurs from the burden of high operating costs by substituting a revenue-sharing model for fixed rentals, allowing them to concentrate on their culinary company. Speed Kitchen offers a completely integrated ecosystem that streamlines kitchen operations and compliance issues with its plug-and-play setup. With more than 130 kitchens and operations in four Indian cities, the company currently collaborates with over 50 brands. 

The Numbers Behind Speed Kitchen’s Growth

Despite, facing an EBITDA loss of 13-18% for the FY24-25, the company has already earned Rs 3 crores.

•    FY 21-22 - Rs 36.5 lakhs
•    FY 22-23, Rs 1.51 crores
•    FY 23-24, 3.25 crores

Last year, the unadjusted EBITDA was roughly around 13 % and PAT was 9.5%. For FY 23-24, the audit number shows EBITDA OF 4.5% which has tripled this year.

The Shark Tank Pitch

Paurav and Shamin requested Rs 2 crore investment for a 3% equity stake in their quickly expanding business when they presented Speed Kitchen on Shark Tank India. The Sharks had some initial reservations, including worries about the company's price, but were persuaded by the team's distinct vision and strong performance history.

Notably, Speed Kitchen has already attracted notable customers like Haldirams and Chef Ritu Dalmia, solidifying its position as a major force in the cloud kitchen market. Additionally, Paurav disclosed that they have landed a lucrative contract with ITC that should bring in a sizable sum of money each month.
 

The Winning Deal
Aman had offered 2 crores for 10% equity, but he backed out since he wasn't prepared to negotiate with the brand, while Vineeta didn't give an offer.  After a lengthy discussions and negotiations, Speed Kitchen struck a major deal with Three Sharks Ritesh Agarwal, Azhar Iqubal, and Kunal Bahl for Rs 2 crore for 6% equity.

A New Chapter with the Sharks

With this significant deal, Speed Kitchen is well-positioned to expand quickly. The company will be able to grow its reach and improve its infrastructure with the help of well-known investors like Ritesh Agarwal, Azhar Iqbal, and Kunal Bahl, as well as their vast experience. 

Paurav shares, “We are happy to get three sharks on board. With their expertise, we will be scaling the brand in new heights.”
 

Ever dreamed of an instant, healthy breakfast free from preservatives and maida? Sounds like a dream, right? Well, thanks to The Naturik, that dream is now a reality!

With our fast-paced lives, figuring out what to cook for breakfast every morning can be a hassle. But why stress when you have a protein-packed, nutritious option at your fingertips? The Naturik simplifies your mornings with a diverse range of healthy, convenient breakfast choices.

The Story Behind The Naturik
Founded in March 2023, The Naturik is the brainchild of Sahil and Isha, a visionary husband-wife duo from New Delhi. Their goal? To redefine Indian breakfast with high-protein, low-calorie, and preservative-free options.

“We wanted to create the healthiest and tastiest desi Indian breakfast brand that fits modern nutritional needs while keeping authentic flavors alive,” says Sahil. To bring this vision to life, the couple worked with award-winning chefs to perfect their flavors while maintaining nutritional integrity.

The Shark Tank Journey
Armed with a crystal-clear vision, Sahil and Isha took their brand to Shark Tank India, seeking Rs 50 lakh for 2 percent equity. Sahil’s17-year experience in FMCG gave them a strategic edge, helping them scale the business efficiently. Since launching, The Naturik has established a strong online presence, and by September 2024, expanded into 470 offline stores across Delhi-NCR—a steppingstone for wider geographical expansion.
Currently, the brand’s revenue is split evenly between offline (51 percent) and online (49 percent) sales, showcasing its balanced growth strategy.

The Numbers Behind The Naturik’s Growth
Despite facing a 12 percent EBITDA loss, The Naturik raked in Rs 87 lakh in sales in its first fiscal year (2023-24). However, things quickly turned around:
•    Q1 of the next year: Rs 92 lakh revenue
•    Q2: A massive leap to Rs 1.6 crore
•    Projected FY Revenue: Rs 5.82 crore!

“Social media plays a massive role in our brand’s reach,” Sahil explains. The brand invests heavily in Instagram performance marketing and Amazon ads, with Sahil himself posting reels to engage audiences.

A Branding Wake-Up Call
Despite its success, The Naturik’s branding came under scrutiny from Shark Vineeta Singh, who critiqued its name, font, and packaging. “It looks like you haven’t put much effort into it. You need to work on this,” she advised.

Meet the Founders
Sahil Vohra—A commerce graduate and MBA from FMS Delhi, he has worked with industry giants like ITC, Britannia, and Walmart in leadership roles.

Isha Vohra—A seasoned HR professional with 12 years of corporate experience, Isha previously ran a QSR franchise (Tibbs Frankie) and introduced innovative food recipes.

The Shark Tank Bidding War
The Naturik’s pitch set off an intense bidding war among the Sharks. Initially, Sahil and Isha sought Rs 50 lakh for 2 percent equity, but the Sharks quickly upped the stakes:
•    Aman Gupta: Rs 1 crore for 5 percent equity
•    Kunal Bahl &Anupam Mittal: Rs 4 crore for 20 percent equity
•    Peyush Bansal &Vineeta Singh: Rs 50 lakh for 2.5 percent equity

With multiple offers on the table, the founders saw an opportunity to bring all five investors on board. After some negotiation, the final deal closed at Rs 4 crore for 22.22 percent equity, bringing Aman, Anupam, Vineeta, Kunal, and Peyush together as strategic partners.

The Future of The Naturik
With five powerhouse investors backing them, The Naturik is gearing up for major expansion. Their strategy? Rapid offline retail growth and an aggressive push on quick commerce platforms like Swiggy Instamart, Blinkit, and Zepto.

“Expanding our retail presence is our top priority as we scale,” Sahil emphasizes. “With more Indians prioritizing health, we aim to be their go-to breakfast solution.”

What Sets The Naturik Apart?
The brand’s unique approach to shelf life is a game-changer. By reducing moisture levels to under 2 percent, Naturik products can stay fresh for up to a year without preservatives—even after opening!

With a mission to make healthy eating effortless, The Naturik is set to revolutionize India’s breakfast scene—one nutritious bite at a time.

A New Chapter with The Sharks
With five powerhouse investors on board, The Naturik is poised to scale new heights in the health food industry. More stores, more cities, and a bigger digital presence are in the pipeline.

The brand’s focus on quick, high-protein, and easy-to-make breakfast solutions aligns perfectly with the fast-paced lives of modern consumers. Their commitment to no preservatives and authentic flavors makes them a game-changer in the health food space.

“We’re not just selling breakfast—we’re creating a lifestyle,” says Sahil. “And this is only the beginning.”

What if every bite of a cake, every sprinkle, and every fondant you taste could feel like a magical treat made just for you? Enter Confect, the brand that’s redefining the world of confectionery with its unmatched quality and innovation. Launched in India in 2018, Confect quickly expanded to international markets, capturing hearts and taste buds alike. With a commitment to revolutionize the industry, the brand embraced food technology to create a wide range of products, including fondants and sprinkles. Boasting over 800 SKUs, Confect is now set to scale even greater heights globally and in India.

Chef Gauri Varma is the driving force behind Confect. Armed with an Honours degree from Lady Shri Ram College and a postgraduate degree from Oxford University’s business school, she possesses a wealth of knowledge and experience. Starting her career at Deloitte and later working as a buyer in India, Gauri’s turning point came after her disastrous wedding cake experience. This inspired her journey into the confectionery industry and the eventual launch of Confect.
Confect’s business model is as innovative as its products. Surprisingly, the brand generates more sales in the US market than in India.

The financial journey of Confect has seen its share of ups and downs. In FY 2018-19, while catering primarily to B2B clients, the brand earned Rs 24 lakhs. By FY 2019-20, sales rose to Rs 1.2 crores, and in FY 2020-21, revenue reached Rs 3.4 crores. The growth continued in FY 2021-22 with Rs 5.6 crores. However, FY 2022-23 witnessed a dip to Rs 4.5 crores. The turnaround came in FY 2023-24 when sales doubled to Rs 8 crores. Looking ahead, Confect has already crossed Rs 7.5 crores in FY 2024-25 and aims to close at an ambitious Rs 15 crore.

The Journey to Shark Tank
Gauri Varma, a Delhi-based entrepreneur and founder of Confect, pitched her brand on Shark Tank to a panel of sharks that included Aman Gupta, Vineeta Singh, Peyush Bansal, Anupam Mittal, and Namita Thapar. During her pitch, Gauri shared a personal anecdote about her wedding in Las Vegas, where Rs 36,000 wedding cake turned out to be a disaster. This experience inspired her to launch Confect, ensuring that no one else would face a similar disappointment.

Valuing her company at Rs 100 crore, Gauri sought Rs 1 crore investment for 1 percent equity. Her presentation highlighted the brand’s expansion to over 800 SKUs. However, the pitch became emotionally charged as some sharks questioned her decisions and strategies.

Peyush Bansal critiqued her approach, calling it a mistake to diversify so quickly instead of focusing on core products like fondants.

Sharks’ Concerns
Anupam Mittal raised concerns about Gauri’s restless nature, which he believed drove her to frequently pursue new ventures. “It’s your fitrat [nature] to get restless,” he remarked, expressing hesitation about investing in her company.

He also questioned her decision to prioritize the US market, where Confect achieved Rs 8.5 crore in sales in just 18 months, over the Indian market. Aman Gupta echoed this sentiment, asking, “Where will you run away to when you sense trouble in the US?”

Vineeta Singh added, “As investors, we need to understand why you shut down operations in India to target the US market.” To this, Gauri admitted, “There is something missing from my end in the Indian market. I’ve struggled to understand, sustain, or build it effectively.”

The Deal Breaker
Despite the skepticism, NamitaThapar stepped forward with an offer of Rs 1 crore for 2 percent equity and 2 percent royalty. She advised Gauri to focus equally on both Indian and US markets to unlock the brand’s full potential. Although this halved her original valuation, Gauri accepted the offer, viewing it as an opportunity to scale with Namita’s mentorship.

The partnership with NamitaThapar marks a transformative phase for Confect. With Namita’s guidance, the brand plans to focus on Indian markets while continuing its global expansion. Together, they aim to redefine their target audience and strengthen brand building across geographies.

Speaking exclusively with Restaurant India, Chef Gauri shared her ambitious plans:
“We are looking at massive expansion this year, focusing on Tier-1, Tier-2, and Tier-3 cities, as well as modern trade. The US expansion will grow threefold, with additional warehouses being opened. We are also planning a European launch, starting with Germany, while continuing to grow in India. Confect will introduce more product categories tailored to different cities. We are committed to maintaining top-notch quality across all locations.”

With its innovative product range, ambitious goals, and a new partnership, Confect is poised to sweeten the confectionery market both in India and abroad.

Imagine indulging in ice cream without a shared of guilt—a sweet dream that has now become reality thanks to Go Zero Icecreams. This innovative brand, launched as the sister company to the iconic Apsara Icecreams, has been redefining dessert indulgence since its inception in 2022. With Apsara Icecreams having established its legacy since 1971, Go Zero is paving its own path by creating ice creams that are not only delicious but also align with modern health trends.

Go Zero’s mission is simple yet revolutionary: to offer low-calorie, high-protein, and vegan ice creams that are free from preservatives and, most importantly, free from guilt. These ice creams are crafted with natural sugar and contain 50 percent fewer calories than traditional options, making them the go-to choice for health-conscious dessert lovers across India. With a diverse portfolio featuring eight categories and over 30 SKUs, Go Zero is rapidly making its mark in the ice cream industry, targeting a growing demographic of health-focused consumers.

Breaking the Mold with Quick Commerce
Go Zero’s business model is as innovative as its products. Over 70 percent of the brand’s sales come from quick commerce platforms, reflecting its ability to meet the demands of modern, fast-paced consumers. This approach has positioned Go Zero as a pioneer in the guilt-free dessert segment, a niche that’s quickly gaining traction in India.
 

The Journey to Shark Tank India
Every success story has a pivotal moment, and for Go Zero, that moment came on Shark Tank India. Armed with confidence and a clear vision, Founder Kiran Shah pitched his brand, seeking an investment of ₹1 crore in exchange for 1 percent equity. Shah’s pitch wasn’t just compelling; it was backed by impressive growth metrics. Since its launch, Go Zero has expanded to 16 cities with over 125 dark stores, a testament to its rapid scalability and operational efficiency.

The brand’s financial trajectory further wowed the sharks. From a net revenue of ₹2.5 crores in FY 2022-23 to ₹11.1 crores in FY 2023-24, Go Zero is projecting an ambitious revenue of ₹33 crores for FY 2024-25. As of now, the brand has already achieved ₹15 crores in revenue, demonstrating its potential to become a dominant player in the ₹20,000 crore Indian ice cream market, where 65 percent of the players are already organized brands.
 

Chasing Profitability
While Go Zero’s growth has been remarkable, the brand is also focused on achieving profitability. Shah outlined plans to improve their contribution margin (CM2) from -5 percent in FY 2025 to +5 percent during peak summer months. He also highlighted efforts to reduce EBITDA losses, aiming for a break-even point in the next few months. By generating ₹5–6 crores in monthly revenue during summer, Go Zero is well on its way to solidifying its financial stability.
 

High-Stakes Negotiations
The Shark Tank pitch wasn’t without its share of drama. Shah’s transparency about previously raising two rounds of funding led to mixed reactions from the sharks. The brand had secured ₹8.5 crores in January 2023 at a valuation of ₹25 crores and ₹12 crores in 2024 at a valuation of ₹63 crores. While some sharks were impressed, others were hesitant.

In the end, Aman Gupta, Co-founder of boAt, emerged as the perfect partner for Go Zero. After some back-and-forth, Shah and Aman agreed on a deal of ₹1 crore for 1.5 percent equity, sealing the partnership and setting the stage for Go Zero’s next big chapter.
 

The Visionary Behind Go Zero
Kiran Shah, the man steering Go Zero’s ship, has an impressive background. An electronics engineering graduate from DJ Sanghvi College, Shah went on to complete his Post Graduate Diploma in Marketing at IIM Lucknow. With experience as a brand manager in Singapore, Shah has combined his technical expertise and marketing acumen to create a brand that resonates with modern consumers. Celebrating the Shark Tank victory, Shah took to LinkedIn to share the brand’s latest milestone:
“Our HIGHEST EVER daily sale on Blinkit. In the coldest month of the year. Shark Tank India fever is on.”

A New Chapter with Aman Gupta
The partnership with Aman Gupta marks the beginning of an exciting new phase for Go Zero. With Gupta’s strategic insights and mentorship, the brand is poised to scale new heights. Together, Shah and Gupta plan to refine Go Zero’s marketing strategies to target the right audience and capitalize on the growing demand for health-conscious products in India.
Go Zero’s unique blend of health, innovation, and taste positions it as a frontrunner in the guilt-free dessert segment. By offering flavors that are not only delightful but also thoughtfully priced, the brand is tapping into a market that’s ripe for disruption.
 

What Lies Ahead
As Go Zero embarks on this new journey, its goals are clear. The brand aims to expand its presence across India, introduce seasonal and exotic flavors, and venture into offline retail to reach a broader audience. By staying committed to quality and innovation, Go Zero is set to redefine the way Indians enjoy ice cream.

In a world where health-conscious living is more than a trend, Go Zero is proving that indulgence doesn’t have to come at the cost of well-being. With a clear vision, a solid partnership, and a loyal customer base, the brand is turning the idea of guilt-free ice cream into a reality—one scoop at a time.
 

The India Foodservice Market size is estimated at 77.54 billion USD in 2024, and is expected to reach 125.06 billion USD by 2029, growing at a CAGR of 10.03%, according to reports.

And, with more and more people wanting to try out new things, experiment around food, we have seen lots of exciting brand entering the food and beverages landscape. Not only this, this is pushing the growth of the food and restaurant business in India that is estimated to grow three times bigger in next few years, inviting more and more investors to take a bigger pie of the business.

Restaurant India recently hosted its Mumbai Edition of the Restaurant India Investment & Development Summit where top restaurant, food brands and investors came together to discuss what’s happening at the restaurant funding sector. 

Here are 5 Key takeaways for any restaurant owner planning to raise funds: 

? Irrespective of the size, type and format of a restaurant, SOPs are non-negotiable. They not only bring in more efficiency and optimise resources but also manage costs effectively. 

? Standardisation in the industry is a tough nut to crack but once SOPs are set, leave room for a little flexibility that takes into account location, culture and people and adapt it accordingly. 

? Urbanisation across India will lead to the next boom in F&B. In the next 10 to 15 years, the face of rural India is also going to change as the government of India aims to build 100 smart cities and 6500 urban towns in the next 10-15 years giving rise to an upswing in lifestyles and spending power. 

? Capital can be raised for a concept in several different ways. Earning and reinvesting profits is one way and getting investors in place to ease the initial struggle could be another. However, I am partial to the first route as it gives you more flexibility in choosing an investor and increases the possibility of running the brand on your own steam. 

? The next big markets for F&B exploration will be Sri Lanka and Bangladesh which we need to keep an eye out for.

When a brand decides to embark on an Initial Public Offering (IPO), it's stepping into a transformative phase that promises not just financial upliftment but also a broader impact on its market presence and operational dynamics. An IPO is essentially a financial strategy that allows companies to raise significant capital by offering shares to the public for the first time. This move is not just about enhancing liquidity and capital reserves; it's a powerful signal to the market, enhancing the brand's visibility, credibility, and valuation. Moreover, going public opens up new avenues for growth through acquisitions, provides a platform for rewarding employees and early investors, and garners invaluable market feedback. The decision to go public, therefore, is a pivotal moment for brands, signifying a leap into a future where they are scrutinized by a wider audience but also endowed with the resources and esteem to scale new heights.

In India, a burgeoning middle class with increasing disposable income and a keen interest in dining experiences has propelled many restaurant chains toward Initial Public Offerings (IPOs). Over the last few decades, numerous restaurant chains have ventured into the stock market through initial public offerings, with varying degrees of success. As March draws to a close and we step into a new financial year, it's an opportune time to keep an eye on the food and beverage (F&B) brands preparing to launch their IPOs.

Upcoming IPOs: F&B Chains Going Public This Year

Among them, Bikanervala, known Indian brand specializing in sweets, snacks, and restaurants, with revenues surpassing INR 3,000 crore, is charting a course towards an IPO for its food segment within the next three years. In the interim, the company, owned by the discreet Aggarwal family and also known for its Bikano brand, is considering partnerships with private equity investors. With ambitions to cross revenues of Rs 10,000 crore by 2030, Bikanervala Foods is investing heavily in new manufacturing facilities dedicated to Indian snacks, signaling its commitment to growth and expansion in the sector.

Swiggy, a leading competitor of Zomato, is gearing up for a monumental IPO, anticipated to be one of the most significant public offerings by an internet company in the coming year. Slated for a mid-2024 debut on the stock exchanges, Swiggy is eyeing an IPO size of $1 billion (approximately INR 8,300 Cr). Industry insiders suggest that this move could see SoftBank, the world’s largest tech investor, significantly scale down its 9 percent stake, valued at over $800 million. This strategic decision might also pave the way for SoftBank and other investors to divest their holdings in Swiggy, as the food delivery titan progresses towards profitability. This is in stark contrast to Zomato, whose share value has diminished by over 20 percent since its IPO launch in July 2021.

In another development, Rebel Foods, the umbrella company for brands like Faasos, Behrouz Biryani, Oven Story Pizza, and Mandarin Oak, is preparing for its own IPO. Expected to submit its draft red herring prospectus in the latter half of this year, Rebel Foods aims for a 2025 listing on Indian stock markets. This endeavor will mark a significant milestone, positioning it as the first cloud kitchen business in the country to go public. Established in 2011 and based in Mumbai, Rebel Foods leverages both its proprietary platforms and partnerships with Zomato and Swiggy for delivering food, underlining the dynamic expansion of India’s F&B delivery sector.

Impresario Handmade Restaurants, with a network spanning over 60 outlets across more than 20 cities, is focusing on expanding its ‘SOCIAL’ brand, as disclosed by its Founder and Managing Director Riyaaz Amlani. The chain, which also manages other popular brands like antiSOCIAL and Smoke House Deli, anticipates ending FY24 with revenues nearing INR 700 crore. Following this, it aims to achieve a growth rate of 20–25 percent annually. Although currently well-equipped financially to fuel its expansion ambitions, Impresario is considering an IPO in the future, depending on market conditions, and is open to exploring various financing avenues, Amlani noted in a recent interview.

How IPOs Serve Up Success for India's Restaurant Industry

In India, restaurants and food service chains opt for Initial Public Offerings (IPOs) to harness a myriad of benefits, including substantial capital infusion for expansion, operational upgrades, and debt reduction. This strategic move not only enhances their visibility and brand credibility among consumers but also offers a platform for liquidity and potential exit opportunities for existing investors. 

Typically, these entities choose to go public after achieving a stable growth trajectory, a robust business model, and a clear path to profitability, which can vary widely in timing depending on the company's scale, market conditions, and strategic goals. “The decision to launch an IPO is often aligned with favorable market conditions and a strong appetite among investors for new listings, which can provide the necessary momentum for a successful public debut. By leveraging public markets, restaurants in India can accelerate their growth, diversify their offerings, and strengthen their competitive position in a rapidly evolving food and beverage sector,” Investment banker, Miheer Mehta who runs his own investment advisory firm stated.

Investor Opportunities in India’s F&B IPO Landscape

Investing in the IPOs of restaurant and F&B chains in India offers several enticing benefits for investors and the general public. This sector benefits directly from the country's economic growth, with an expanding middle class, increased urbanization, and a shift in consumer behavior towards organized dining and convenience food, making it a fertile ground for investors. The inclusion of such stocks in an investment portfolio not only offers diversification away from traditional sectors but also aligns with a long-term growth trajectory powered by demographic and socioeconomic trends. 

Early participation in these IPOs can provide investors with a front-row seat to capitalize on the sector's expansion and the potential for significant returns as these companies scale operations, improve margins, and explore new markets. “For investors seeking not just financial returns but also alignment with consumer trends and preferences, investing in F&B IPOs allows for a stake in brands with which they have a personal connection or admiration, adding a layer of personal satisfaction to the investment decision,”  Sujeet Mehta, co-founder of Restaurant Consultancy Firm, We Serve commented. This investment avenue thus offers a unique blend of financial opportunity and personal involvement, set against the backdrop of India's dynamic economic landscape.

Restaurants IPOs that are Performing Well in India

Sapphire Foods, a leading restaurant operator across the Indian subcontinent and known for its stewardship of KFC & Pizza Hut outlets, marked its entry into the public market in November 2021. Demonstrating a robust performance, Sapphire Foods has seen a one-year return of 16 percent, with its issue price at INR 1180 and the current share price appreciating to INR 1392.

Devyani International Limited (DIL), with a notable presence in the fast-food sector, launched its IPO at a share price of INR 90, which has since ascended to INR 147. Similarly, Burger King India Limited began its public journey with shares priced at INR 60 during its IPO, now trading at an impressive INR 101, showcasing the vibrant potential and investor confidence in India's restaurant and F&B sector.

As more restaurant and F&B companies in India decide to go public, there's a lot of excitement and opportunity for investors. These IPOs (when companies sell their shares to the public for the first time) are a big deal because they show that the food industry in India is growing fast. This growth is good news for people looking to invest because it means there's a chance to make money by investing in companies that are doing well. With big names like Bikanervala, Swiggy, and Rebel Foods planning to launch their IPOs, investors have a great chance to get involved in a booming sector. This move is not just good for the companies that get a boost of money and attention but also for investors who get to be part of a success story in India's vibrant food scene.

Pancakes have been very famous in the US and Europe. The joy of biting into freshly baked fluffy pancakes, layered with fruits, maple syrup, or whipped cream is unparalleled. Let’s just say, it offers indulgence like no other. However, the knowledge of pancakes has been limited in India. This is what struck Co-founders Akashdeep Dan and Sundeep Singh at Uncle Peter's Pancakes in 2018. “At that point, only a few pancake brands were there and they were only serving mini pancakes. The other option was to head to high-end cafes and restaurants to enjoy pancakes. This gave us the confidence to go ahead with pancakes,” shared Sundeep Singh who started experimenting at events, tried making sauces, took photos, and asked people whether they’d like to have something like this and after seeing great responses they opened their first outlet in September 2019 in Indiranagar, Bangalore.

Recently, the brand ventured into the Shark Tank India season three by cracking a joint deal of Rs 60 lacs for 3% equity and 3% royalty until Rs 1.2 cr is recouped from three sharks; including Anupam Mittal, Vineeta Singh and Namita Thapar. Excerpts from the interview:

How has been the journey so far?

Over the last five years, the brand has built a solid menu offering at least 200 pancake varieties, besides crepes and waffles. It often changes the menu to surprise its clients, including summer and winter special varieties based on seasonality. Such is its popularity that it sells 5,000 pancakes on average per day, with orders increasing on weekends. From five outlets in 2021, to 40 outlets until April 2023 across 15 cities in India, it has expanded rapidly.

How much money have you put into starting the concept?

We have put around 10 lacs initially to start the business. 

Why franchising? What's the franchise fee per outlet?

Franchising is a method that organizations utilize to distribute their products and services via retail outlets owned by dealers or operators, known as a franchisee. The company that allows the independent third-party operator to sell its products and services using its name and techniques is the franchisor. This method enables big companies to branch out and expand while enabling individuals to run the franchise with a proven formula for success. In many cases a franchise reaches the break-even point faster than an independent business because of the established brand name. 
Our franchise fee is 5 lakhs for 5 years. 

On Fund Raised at Shark Tank India

After investment we have 3 main focus areas to work on:
Operations excellence, although we have started the journey but to excel, we need to work on supply chain and production to strengthen our franchise network. 

Tech enablement inside out, for franchise partners best technology solution and for customers we want to ensure user friendly platforms for ordering with loyalty programs. 

Marketing- Till now we have focused on our product and franchise network but still there is a lot of work on marketing activities so we would like to leverage the investment to reach more customers and increase the awareness about the brand and pancakes.

What's your expansion plan?

Uncle Peter’s Pancakes may now be a leading player in the category but still we have a long way to go. From two of us in 2019, there are more than 150 employees that work with Uncle Peter’s Pancakes across all its locations. We want to establish the brand at 100-plus locations by the end of 2023 and at 350-plus locations by 2025.
 

Dil Foods is a Bangalore-based virtual restaurant operator that won ‘Cloud Kitchen’ of the year award at the prestigious 12th Indian Restaurant Congress & Awards held in September 2023. Recently, the brand ventured into the Shark Tank India season three by cracking a joint deal of Rs two crore with four sharks. 

Bringing the diverse flavours of India directly to the plate, ‘Dil Foods’, has been making waves in the hospitality industry since 2022. The company was founded by ex-Swiggy, Arpita Aditi to support the small and medium-sized restaurant businesses. Excerpts from the interview: 

How it all began

When I was with Swiggy, I used to interact with lots of restaurants especially the large chains like Freshmenu, Chai point and CCD to name a few but a lot of local restaurants reached out to me stating that they are at the verge of getting shut down. That’s when I started digging deeper and realised that things are very difficult for these local, small and medium size of restaurants because they are just one man army, taking care of everything from end to end. So, that’s really took a toll on their business and they can hardly focus on growth. That’s when I thought of doing something for this segment of the industry, the people who contribute more than 90 per cent in the F&B industry. Initially, I started a consultancy where we used to mange end to end online business management for them so they would take care offline customer experience and we would take care of online business like menu engineering and become the face of their brand for Swiggy, Zomato and all of that so we ran that for two years and realized while top line was increasing for them bottom line was still a challenge because their cost of marketing was super high and the cost for acquiring each customer was super high and that’s how Dil Foods came into appearance.

On Funds Raised

We have raised around 17 crore so far. When we started we raised around 1 crore during the inception of the brand from angels and post that we did some bridge rounds in between and raised another crore and the last year we did pre series A through Mount Judi Ventures and V3 Ventures. So, the money that we have raised in Shark Tank would be used on technological advancement for bettering our supply chain and also expansion in newer cities as right now we are live in Hyderabad, Bangalore and Chennai. We also now looking at expanding to Pune, Mumbai, Ahemdabad, Coimbatore and NCR as well.

On winning big at Shark Tank

I’m super excited to have the kind of investors that we have brought on board during Shark Tank. We have Piyush Bansal, who is the god of tech and the way they have solved their supply chain, we really hope that we learn a lot from them and better our operations too. Then, we have Vineeta Singh, who has joined hands with us in building our brand. We also got Ritesh Agarwal on board who’s the founder of OYO and Dil Foods is quite similar to Oyo. And, I’m really looking forward to learning from him and getting to know about his journey during his initial days and then we also got Radhika on board who will help us and guide on building a large business, having tight control on financial activity aspects ensuring that the financial health is super healthy, super critical and it would be really helpful for us to ensure that we are moving in the right direction not just businesswise but financially as well. 

What’s the process of getting into Shark Tank?

There’s a long process to get into Shark Tank. For us, Shark Tank happened by chance. One of our team member was really pushing for it and she/he randomly applied for it and then we got a call. So, there are multiple round before you go for the final pitch. So, first is of course the application round where you send written application and then you are suppose to send a video or message talking about your brand and after that there is another audition round which for us happened in Mumbai where they get to know about all your business metrics and your camera presence on how solid your business is. And, after that if you are selected you are called for the final pitch round where you pitch in front of the sharks.

How many brands you have?

We have 8 brands in total serving different state foods and cuisines in total. We also serve snacks from different parts of India. We have been operating these 8 brands so far and are launching 4 new brands. The average ticket size for us is above Rs 300 per order.

India continues to be the fastest growing economy in the world with some of the factors like young population, increasing disposable income, demographic changes which actually turns right the consumption and also offer restaurants and hospitality business a considerable opportunity to grow. Despite all the right ingredients we still do not see much of VC and private equity investment in the brick and mortar restaurant business. And, we can say that 2021 was the year of tech-led investments where investors have showered their blessings on delivery, cloud kitchen, tech-enabled restaurants looking at the growth this segment holds.

Also Read: What Excite Investors to Pour Money in Your Restaurant

Also, there is a sudden shift in the venture capital business. In the last two three years a lot of venture capitalist have invested in the food technology or the restaurant space. Majorly there were two things happening- the large ticket venture capitalists, people who were able to invest about $60 MN or VCs who are back investing traditionally into the core technology products and hence, food and food service at large doesn’t feature as an area of interest to them.

From brands like Zomato, Swiggy that has become the market leader in delivery to home grown cloud-kitchen brand Rebel Foods that entered the unicorn club with the latest round of funding; each one of them received great appreciation from the investment circle.

“The food-tech space has evolved towards better personalization, innovation, and complete transparency which Rebel Foods continues to pioneer. With this round of funding, we will continue to serve newer customer food missions powered by technology and automation,” said Ravi Golani, Chief Strategy Officer, Rebel Foods recently during its announcement that it has raised USD 175 million in a Series F round led by Qatar Investment Authority (“QIA”).

According to a report, the Indian food service delivery market is expected to more than double to $13 billion (Rs 93,600 crore) by fiscal 2023 from $5.2 billion (Rs 37,440 crore) in fiscal 2020. With no physical presence, less commercial involvement and working as an internet restaurant wherein you can get the food delivered at the comfort of your home, cloud-kitchen segment is projected to become a $2 billion industry in India by 2024, as per a report by RedSeer Management Consulting.

Also, if we look at current market trend, more and more restaurants are happy sitting at home and binging on their favourite food. This has also led tech-led businesses to get investors attention.

“There is a huge opportunity in the cloud kitchen model because it allows a lot of aggregation and local food. I think at the end of the day, food is still local,” shared Shanti Mohan, Founder, LetsVenture by adding that this concept is a combination of asset light versus somebody managing the infrastructure.

May Interest: Ahmedabad-based Bigspoon bags Rs 15 Cr in pre-Series A round from NB Ventures, others

Commenting on the same Neelesh Bhatnagar, MD, NB Ventures, “We are excited to partner with Bigspoon, who are transforming the cloud kitchen landscape in Tier-II and III cities, with fresh-pier food and tech-led disruption in the F&B space. Our expertise in the Food-tech sector and their focus on a full-stack solution has great synergy.

NB Ventures recently invested Rs 15 crore in Ahmedabad-based multi-brand cloud-kitchen BigSpoon .

India’s F&B industry is evolving faster than ever. Global brands have entered the burgeoning market. The Indian food palate has also evolved over the years with a wide variety of cuisines becoming popular. The rapid growth being witnessed by the industry can be attributed to the growing disposable incomes and aspirational lifestyles of the country’s young population.

Many restaurant owners are aware of the opportunities to scale their business. However, they adopt a conservative approach given the large amounts of capital required to fund expansion. However, with Venture Capital (VC) firms, angel investors and even private equity funds arriving on the scene, new investment avenues are opening up.

Mihir Mehta, a Mumbai-Based Investment Banker strongly opines that there is a lot of uncertainty in the food services space and while Zomato’s IPO comes as great news, not just for the F&B ecosystem but overall startup ecosystem, the sentiment around the F&B ecosystem is still ambiguous. "Whether the third wave occurs or not, the larger fear that prevails among the investor community is the recurrent & unplanned lockdowns (which now are highly localized) and the damage it causes to business as usual," he commented.

Also Read: Cloud-kitchen brands woo investors; attracts funding to expand businesses

That being said, not all perception is negative. Mehta further stated that "On certain counts like availability of staff, adoption of the digital ecosystem by restaurant players, reduction in rentals etc. we are seeing restaurant players doing much better than last year. Again, to be extremely candid, the onset of Covid has resulted in a closer examination of matrices like unit economics, revenue per square feet, organic walk-ins etc when it comes to investing in the space and going forward, the winners may reduce in number but shall be the sustainable ones."

Active VC firms are quite bullish on the F&B industry in India, even post covid. Principal of LightBox Venture Capital had stated” With the growth of 10percent every year, about 33 percent of the industry trends are slowly getting organized. Taking this as an advantage, we can build larger brands with multiple outlets.”

Swiggy, Zomato, UberEats (in India), have proven that the well connected and fast-evolving Indian middle class is ready to pay for convenience. The multi-million dollar fund-raise did by various ventures in pre-pandemic years has validated the future of cloud kitchens in India. Owing to the covid situation now, market studies show that the demand for online ordering is only going to grow.

"With the rise of food delivery, hybrid revenue models will be at the forefront of building sustainable unit economics. It will be explored with a focus on dine-in, takeaway and delivery forming the core to retail sales. This will be augmented by catering and B2B orders, which pushes the topline sales and broader reach for brands," believed Manvir Singh Anand, Food Business Expert and Founder of Knight Gourmet and TKG Ventures, who further commented that the cloud kitchen revolution will force brands to adapt to the single kitchen, multi-brand approach, where a single infrastructure will be used to create multiple 'virtual brands'.

Restaurant businesses have traditionally been a cash-generating business and add immense value to a value PE/VC investors portfolio and balance sheet, however, post-pandemic - restaurant businesses will have no choice but to adapt to newer and scalable business models with multiple income streams to find access to Venture Capital money especially in the short run.

“Brands with very high stickiness with their customer through consistent quality and extremely high hygiene standards will have a competitive advantage always. It can be seen from the success of IPO's of brands like Barbeque Nation, Burger King India which have generated alpha for their investors, despite the pandemic," Anand concluded. 

It is beyond doubt that the outbreak of this pandemic has altered every single aspect of life and the reason this event is unique when compared to previous catastrophic event is because it has affected the entire world and created global repercussions. The response to this pandemic has unequivocally tested the patience, resilience and grit of people globally.

This outbreak and the resultant lockdowns, collapse of supply chains, unavailability of resources and the overall uncertainty has created an interesting and impactful shift in the startup ecosystem and its most critical element - raising capital. In India, we are now progressing remarkably on the vaccination drive and though we are returning to pre-covid normalcy, my belief is that some of the trends that emerged in the fundraising paradigm are here to stay.

Some of the long-term trends observed across the food startup investing space (in our opinion) are stated as under -

Also Read: Beverage brand Salud bags funding from Rana Daggubati, others to launch Ready-to-drink Gin & Tonic

Deeper focus on cash flows - Growth versus sustainability of cash flows has always been a perplexing decision for growth hungry startups and its investors. However, the pandemic has given birth to a renewed focus on cash flow generation and minimisation of cash burn so that the startup has enough reserves to survive challenging times. On that note, it is advisable that entrepreneurs build a growth trajectory that accommodates stronger unit economics, lower operating costs and generating sizeable cash flows to maintain adequate reserves post re-investments.

Competitive entry point and discovering the intrinsic value of the business - One recurring phenomenon that was observed during the pandemic and continues to happen, is raising capital at lower valuations compared to earlier rounds. A primary driver of this activity has been the cash crunch faced by actively growing startups, which compelled some startups to raise capital with a sense of urgency, leading to dire consequences for the overall value of the companies. As a result of discounted valuations, there is a visible movement in valuation models & determination of business’ intrinsic value. Both institutional and non-institutional investors are now putting in greater diligence when it comes to determining the right entry point (from a valuation perspective) and factoring in higher sensitivity in the financial projections, multiple exit scenarios & different timelines to calculate a robust return profile

Integration of technology & role it plays in streamlining operations is critical - It is a known fact that technology has reigned supreme during this unfortunate time and it has proved to be an indispensable insulation by minimizing the repercussions of this pandemic. That being said, there is a slightly erroneous notion that investment interest is deepening only in deep tech or heavy tech businesses. In my humble opinion, the role of technology has become extremely clear because of the outbreak of COVID-19 and more importantly, it has accelerated the pace at which organizations are now adopting technological advancements across the business.

May Interest: Latest funding provide boost to food-tech platforms, to enable hyper-local delivery

What this translates into when it comes to fundraising is that the investment interest & intent runs high where technology is playing a critical role across business functions as much as feasible and viable. To make it clearer, it could be any business function including supply chain, recruitments, financial control, marketing etc. that can integrate technology in order to scale faster and manage operational costs but not at the expense of product/service quality, customer experience, employee satisfaction etc. It is essential that founders understand the significance of building automation in operations (on the back of workable technologies) and create scale faster along with a healthy income statement.

“Every crisis represents an opportunity”. True to this statement, this unfortunate & catastrophic event has given rise to multiple opportunities, which are becoming potential candidates for raising capital and building a robust & resilient business. At the cost of sounding repetitive, the parameters to investing in emerging startups have definitely undergone modifications but the paradigm remains the same - investing capital in businesses with a strong moat & sturdy execution capabilities.

India continues to be the fastest growing economy in the world with some of the factors like young population, increasing disposable income, demographic changes which actually turns right the consumption and also offer restaurants and hospitality business a considerable opportunity to grow. Despite all the right ingredients we still do not see much of VC and private equity investment in the brick and mortar restaurant business.

Also, there is a sudden shift in the venture capital business. In the last two three years a lot of venture capitalist have invested in the food technology or the restaurant space. Majorly there were two things happening- the large ticket venture capitalists, people who were able to invest about $60 MN or VCs who are back investing traditionally into the core technology products and hence, food and food service at large doesn’t feature as an area of interest for them.

“There is no denying that you are putting in money to get a good return and so there will always be market size, scalability, valuation and most importantly the person you are backing,” shared Sumer Juneja, Partner, Norwest Venture Partners.

The issue which has come in the past in the restaurant space is about the scalability of the concept and the model, pricing it in the right way to make the investors earn money. “The scalability is becoming more apparent and I think investors have gone through a cycle in which they understand which formats can scale,” added Juneja.

India is going to be a low average value market with a very high volume and people tend to move towards QSR and other such formats where there is high volume. The GDP per capita economy is not going to change overnight and expenditure will take time. It is the 7-10 years long marriage between the investor and the brand. There has to be a price ride and there is no point getting a very sweet deal either way and then fuming out later. “One of the key factor in investing a restaurant is the sustainability. It all depends on the life span of a brand. For eg: earlier the life span of a casual fine dine was 4-5 years which is now coming down to 2-3 years. So, you should always look at the flexibility and how food is adapted to the change and constant menu innovation because most of the time restaurants that doesn’t adapt themselves to the change fails to sustain in a long run,” said Biju Thomas, CFO, Adiga’s.

Commenting on the same, Digvijay Singh, COO, Indian Angel Network pointed, “The innovation part in restaurant business also has to be taken care of.  Restaurant owners need to come up with innovative ideas of their dishes, the way they deliver overall experience to the guest. Restaurant has a shelf life of 3-4 years and that’s where struggle for equity come in.”

No matter how innovative the concept is if you are not passionate about it and your model is not sustainable, you are not going to survive. And, for investor sustainability is the key to invest in a brand.

While in the early stages of designing your restaurant, you may find it hard to think past the first year, but it's critical to think further down the road.

Even before you get to that point, a good business plan should factor in the worst case scenario.

According to a study, over 94% of new businesses fail during the first year of operation. Lack of funding turns out to be the most common reason. Money is the bloodline of any business. The long painstaking yet an exciting journey from the idea to revenue generating business needs a fuel called capital. That’s why at every start of the business, entrepreneurs are found asking questions relating to financing their business.

Good Signs to Invest

A large market that’s getting organised and moving towards higher value-added products has sparked investors’ interest in the F&B space where there’s rising demand for better, healthier, affordable and easy to access products, paving the way for entrepreneurs to jump in and build next generation brands.

Niranjan Sheshadri, Founder, Last Mile Ventures says,” There is a secular move in rating out the formally organized space to the branded space be it QSR, CDS or the Fine dining space.”

Colliding with several ups & downs, Sheshadri continues,” This trend will benefit almost every sector in the F&B space. The shift from unorganized to organized will continue to rise and the new era of Entrepreneurs is going to add value, creating brands which are likely to open 30 to 40 outlets across Tier 4 cities.”

On similar terms, Krishna Vinjamuri, Principal, Lightbox Venture Capital says,” With a growth of 10% every year, about 33% of the industry trends are slowly getting organized. Taking this as an advantage, we can build larger brands with multiple outlets.”

Reducing Risks

To an aspiring restaurateur, the challenges of funding a business can seem overwhelming.  “The growth of the market will continue over the next 10 years with a 15% growth, which is sufficient for an investor to invest and create large-scale business in the long run”, adds Sheshadri.

While such companies don’t exist today, certainly the entrepreneurs are there in the field, raising capital and positioning themselves to get good returns.

Most of the Restaurateurs will move away from the mainstream to malls. In terms of customer experience, the changes are not significant enough and will continue the way expansion is handled and the way supply chains are built.

It is always better to go for a partnership in the restaurant business as it not only makes investment easier but also reduces the risks in business by sharing the future profit and loss. If it’s your first restaurant venture, try to look for a partner who already has some experience in the restaurant business.

Innovation is Major

In an industry where standing still means falling behind, innovation is the defining factor for most successful brands.

Roughly speaking, the industry has received close to about 5000 crores of funding in the last 4 years which is half the money that was invested in this industry in the last 20 years.  

There is not much expectation in terms of innovation relating to the customer experience. A lot of innovation is expected around standardising processes to make sure that a brand can go from 20 outlets to 50 outlets without compromising on the experience.

“The most important development that is going to happen in the IPO market is going to be favorable towards successful chains”, Sheshadri adds.

There are changing business models actually helping people not just dine out but also at home.

Commenting on the invasion Krishna says,” Technology is helping people discover the restaurants with distribution platforms like Zomato, Swiggy, UberEats that are helping these restaurants maximize their potential by being able to offer to customers in giving them convenient food options.”

“There are elements of the supply chain that is relevant for larger size restaurants where technological innovation is playing a key role in ensuring that the inventory levels are done right”, Krishna added further.

Before starting your restaurant, you need to take the time to thoroughly think through and budget your initial expenses. This can help you to experience a smooth and successful launch whether you are starting from scratch or buying an existing restaurant.

Restaurant type: Before planning your expenses, you should first identify the type of restaurant that you wish build. This is because expenses vary for each type.

Related: How to start a restaurant business?

Building expenses: This is the most expensive part of your project. Whether you want to start your restaurant from scratch or buy an existing restaurant, you will face many hurdles. Starting from scratch will require more expenses than buying an existing restaurant. Among the benefits of both, the immediate cash flow is possible if you buy an existing restaurant. There are other options as well such as you can buy an already constructed space to start your restaurant. That might involve rent expenses.

Licenses and Permits: For opening a new restaurant, you need to purchase a business license or permit. You also have to obtain food safety license, health/trade license, eating house license, liquor license (if you are going to serve liquor), to name a few.

Insurance expense: The property that you have bought for opening the new restaurant needs to have insurance to prevent property damage. So you need to buy insurance.

Marketing: Before opening your restaurant, you need to first launch your marketing campaigns. These campaigns also involve a lot of cost so you need to be careful on choosing your channel of marketing.

Wages for employees: Irrespective of whether you are building your restaurant or buying an existing one, you need to be think hard on the personnel employed. It is better to start with less staff and then increases their number gradually as cash flows in.

Buying Kitchen Equipment: It is important to understand that buying all kitchen equipments will have drastic affect on costs. So it is better to first decide on the menu so that you are very clear about the equipments you require. Once that is decided, involve a vendor or supplier to provide you with the equipments to start off. Choosing a vendor is much like choosing a new employee. You should not decide a vendor on the basis of his price but checking their references. You should decide vendors depending on their delivery, work and the kind of good working relationship with you. It is also important that you don't employ too many vendors as that can affect your cost.

Furniture cost: In case you are building a restaurant from scratch, you need to be ready with the expenses on basic furniture. In case you have bought an existing restaurant, the fixture may be included with the cost.

Working capital: When you will open your restaurant, you need to have some cash reserved for the start-up period – a crucial period. During this period, instead of incoming cash flow there is only outgoing expenses.

Related: 7 Ways to Start a Successful Casual Dining Chain

Technology: You need to have at least a personal computer with accounting software installed for duty managers, a phone and a LAN connection.

You should not take anything for granted during the start-up period. So everything needs to be taken into consideration when planning for startup costs.

Growing at a CAGR of 18-20 per cent food business has become one of the most lucrative segments to invest into. Not only investors but, also individual corporate are putting heavy amount into the segment witnessing great returns the industry is offering.

Last year that could be termed as the investment year for food business especially Food-Tech business inviting more than $250mn investment alone, this year seem less active in terms of attracting the investors. May be, it is the fear that many food-tech players have put in at their face because of their sudden closing and failure into the business. But, there are few start-ups and restaurants that grabbed the opportunity and invited investors to put money in them showing great scale for the business.

The Food-tech race

Starting May, Mobikwi, a Gurgaon based mobile wallet and payment platform which caters to restaurants like Domino’s Pizza Hut amongst others raised Rs 50,000,000 from GMO Payment Gateway and Media Tek. Similarly, Vadodara based BoiBanit, a Consumer Internet platform has raised seed funding from undisclosed list of investors.

And, this doesn’t ends here Swiggy, one of the fast evolving and growing online delivery platform which has attracted investors previously has also raised Rs 7,000,000 from its existing investors including, Norwest Venture Partners, DST Global, Accel Partners amongst others. Going forward, Bengaluru based food ordering mobile app TheSmartQ has attracted Rs 250,000 funding from YourNest Angel Fund.

Entering the long haul race, Gurgaon based Eatonomist has raised an undisclosed amount in seed investment from MCube Capital Advisors Pvt Ltd. Operated by Fitmeal Solutions Pvt. Ltd, Eatonomist will use the capital for marketing and building brand. “We have recently revamped our website and with the funding, will soon launch an app as well,” said Anisha Dhar, co-founder, Eatonomist.

QSR always offer lucrative returns

And as people have always loved the fast food space, entering this space with small investment and relying on big returns has become the nature of the segment. Mamagoto one of the top trending restaurant in Asian food today, has bagged Rs 335mn from Max Ventures & Industries which has made its first maiden venture into the PE segment. MVIL will be co-investing in the second round with Goldman Sachs, the key investor in the first round.

Explaining the rationale behind the investment, Sahil Vachani, MD, MVIL, said, “Within the sectors that we are actively considering for investment, we particularly favored Azure Hospitality because of the vision of its founders, their values , the scale they have demonstrated and the potential for profitable growth. We are also pleased to partner the existing investor, Goldman Sachs, who is investing further at this stage. The strong fundamentals of Azure coupled with huge growth prospects within the sector make this an exciting opportunity for MVIL.”

Similarly, Gurgaon based start-up which is serving fast foods has got seed funding from angel investor Ashish Gupta.

Food processing is not behind

Seeing all the lucrative opportunity that the segment is offering, top FMCG players in the country have raised the bar by inviting global investments in them. From Cremica Food Industries which has made a mark in the industry to Maiyas Beverages and Foods owned by MTR founders have got good investments from top investors. Peepul Capital has invested Rs 200 crore in Maiyas Beverages to expand their RTE products

“However, Peepul Capital will invest into the expansion and growth of the brand whereas its existing investor Ascent Capital will support Miayas to build varied product portfolio catering to the urban customers,” shared Sudarshan Maiya, Executive Director, Maiyas Beverages & Food.

In the same manner, Cremica Food Industries, one of the leading FMCG conglomerate has raised USD 15 million from Rabo Equity Advisors, Investment Advisors for India Agri Business Fund II (the “Fund”. With this funding, Rabo has also acquired a minority stake in Cremica.

“Cremica is excited to have Rabo Equity on board as an investor. Rabo’s deep sector knowledge and experience in the food space will help Cremica in a long way towards fulfilling its growth plans,” shared Akshay Bector, Chairman & Managing Director, Cremica Food Industries Limited.

Hence, at a time when India’s food industry is estimated at USD 100 Bn. within this, the organised sector is expected to grow at 16 per cent CAGR to USD 28Bn, in the next 5 years, investing in top brands could be a good opportunity for both investors and brands to grow. 

How was the idea initiated?

Easymeat was started six months ago by three of us.  Karan is ahealth freak and used to do lots of workout in gym and as his body require lots of protein he has a regular intake of meat.  While going to market once to buy meat he realise that while buying meat from these local suppliers the hygiene factor is lost.  And, that’ show we started on idea to deliver fresh meat maintaining the entire hygiene factor in it. Later, I and communicated also joined him in the business as we were also interested in food business.

What research you did before launching your site?

We did a complete market research of Pune, Delhi and Bengaluru and we found that 60 per cent of the Indians were non-vegetarian. And, with rising awareness, cookery shows and cooking trends people today are trying to cook different types of cuisines at home. It is all because of the certain cusine that ahs entered India is very meat driven. We thought of entering into meat business.

Have you partnered with local suppliers?

We have local, national and international suppliers.

We have seen lots of players entering the segment. What competition do you see from them?

We are not an aggregator all the companies in this segment are aggregator. We have created a brand itself, we are fresh meat brand, and we have in-house butchers, customise it and send it according to the customers demand.

Tell us about your partnership with Venky’s?

Earlier, we started as a fresh meat brand and we were only doing fresh and neat meat. But, when we started getting customer tractions lot of customers asked for processed food, and then we partnered with Venky’s and gave them the whole right for the section.

Is there any revenue sharing between two of you?

Yes, we are taking a revenue sharing of 15 per cent from them. We have signed a one year agreement with them and it’s an exclusive agreement that we won’t sell any other brand with us.

What about restaurant and hotel partnerships?

We also started taking orders from restaurants and hotels to grow business. We do have a B2B part where we are handling the entire month meat supply of many hotels and restaurants who order about Rs 80 thousand to 1 lakh rupees meat from us.

How is the pricing done?

We wanted to capture the household market, the housewife’s for their daily needs hence the pricing  is competitive to the local meat suppliers and we are able to do that because we have streamline the supply chain so well. We are directly getting it to our warehouse and customising it. So, we are having the entire supply chain and that gives us the freedom to go ahead with the competitive pricing.

What is the average ticket size of your products and the margin you get on them?

Fresh meat segment average ticket size is 550 RS and the margin is close to 40 per cent.

What is the expansion plan?

We are in the middle of raising funds. So, we will expand only after it’s clear. It will take a month or two. We are completing over to 100 products. And, we are getting lots of queries from Bengaluru. So, our expansion plan includes Mumbai and Bengaluru by round of funding and then Delhi.

Like 2015, this is also luring great investment in food business segment. With a promising budget for the sector from Government, there seems lots of development in the industry happening.  From healthy food start-ups, a quirky restaurant concept, a chef curate platform and a coffee or tea business all are getting good traction from the investors.

And, breaking all this norms, Ahmadabad based Salebhai.com has even attracted their customers’ to invest in them. Following the trend, these start-ups are continuously gaining attention with investment form top investors. From Bengaluru based Cookaroo which recently bagged angel funding, to First Eat which raises a seed investment, Delhi based restaurant start-up Big Fish Ventures have closed the most recent deals.

Latest on the cloak

Delhi based Indulge Beverages which owns the brand Bonhomia has raised $1 million in angel round of funding from HNI's lead by Alok Rawat, president of FGWilson and an early investor in Grey Orange Robotics as well as Neeta Mirchandani from Kae Capital and his former investor Kanwaljit Singh, Ex Co Founder& Senior Managing Director, Helion Venture Partners).

The tea and coffee capsules brand has also infused $ 2 Million from group of investors in April 2015. The group is planning to use the fund to expand and improve their backend.

"We have sold over 1 lakh capsules in the last month. We will use the funds to expand and improve our back-end capabilities and develop our team," said Kunal Bhagat, cofounder, Indulge Beverages.

However, in the overcrowded Food delivery start-up sector, Cookaroo is one of a kind start-up that is not only redefining the consumer experience but is also addressing the problems that exist in the supply chain side.

Bengaluru based Cookaroo, a food delivery start-up that delivers freshly prepared meals by utilizing the underutilized commercial kitchens, has raised angel funding from Vijay Krishna Yadav of Highland hospitalities and Sachindra Murugesh.

The funds will be utilized towards technology development and to scale operations across Bangalore and Hyderabad. "We will be utilizing a significant chunk of our funds towards improving the technology to serve our customers better.

Through this investment, we are also planning to rigorously expand across different areas in Bengaluru as well as in Hyderabad," shared Darshan Subhash, CEO & Co- Founder, Cookaroo.

Gurgaon based Gurgaon based First Eat, has raised $200K from a serial investor who is an F&B entrepreneur. Managed by FE Food Tech Pvt Ltd, First Eat offers standardised and affordable healthy meals via its app, on both on demand and subscription basis.

“The new capital will be used to expand operations in the NCR region, increase traction on the app, and focusing on technology,” shared Mannat Wadehra, Co-Founder, First Eat.

And, the list was topped by Ahmedabad based start-up Salebhai.com which has raised funds from its customers to expand its businesses.

The group has so far raised 10 high net worth where customers have invested between Rs 5 lakh and Rs 1 crore. Known for bringing the customers' childhood memory back, this start-up has been catering to top executives in the country and globally.

The start-up has been selling sweets and farsan (namkeen/Indian snacks) local delicacies made by certain famous shops in particular cities and towns, to customers across the country.

"The idea is to provide the diaspora of communities whatever they miss from their hometown," said Vishwa Vijay Singh, Co-Founder, Salebhai.

Thus, we could see that 2016 again is going to be a food-start up led year.

Bengaluru based Cookaroo, a food delivery startup that delivers freshly prepared meals by utilizing the underutilized commercial kitchens, has raised angel funding from Vijay Krishna Yadav of Highland hospitalities and Sachindra Murugesh.

The funds will be utilized towards technology development and to scale operations across Bangalore and Hyderabad.

In the overcrowded Food delivery startup sector, Cookaroo is one of a kind startup that is not only redefining the consumer experience but is also addressing the problems that exist in the supply chain side.

With its smart business model and technology, Cookaroo standardizes the consumer experience by utilizing the excess capacity in the market that is under monetized and inefficient.

"We will be utilizing a significant chunk of our funds towards improving the technology to serve our customers better. Through this investment, we are also planning to rigourously expand across different areas in Bengaluru as well as in Hyderabad," shared Darshan Subhash, CEO & Co- Founder, Cookaroo.

Vijay Krishna Yadav, MD, Highland hospitalities said “Cookaroo's business model is similar to OYO rooms' business model in the budget accommodation space. This unique and scalable model has allowed them to be profitable early on in the business. Most food delivery startups today are only addressing the consumer side of the food delivery ecosystem. Cookaroo is not only addressing consumer pain points but is also solving the problems that exist in the supply chain side. We believe that Cookaroo is in a good position to grow into a strong player in the burgeoning food delivery industry”

Sachindra Murugesh who was previously heading PressPlay Events and now a VP of Business Development at Cookaroo added “We are happy to fund a spirited bunch of talented youngsters on an exciting mission. We have seen great results from this team so far and with this investment they can spread their wings further. Cookaroo's Corporate Catering and Events stream of business provides additional financial stability. This currently forms around 20% of our revenues and we want to grow it to 50% within the next 3 months.”

With a gross margin of 21.5%, Cookaroo currently processes close to 200 orders per day and has 15 operational commercial kitchens across JP, Jayanagar, HSR, Koramangala, CBD (central business district).

In the coming months, Cookaroo plans to expand to Sarjapur, Kammanahalli, Bellandur and many other prominent IT corridors in the city. By April 2016, Cookaroo will also launch operations in Hyderabad.

Gurgaon based The Beer Cafe is planning to raise Rs 15 crore debt funding.

The Alco-beverage chain is planning to grow its number count to 60 from 35 at present, adding 30 more outlets.

“On a company level we are stable now; are not burning any cash. And, we want to grow as a national brand and hence we are in talks with two NBFCs to raise funds,” shared Rahul Singh, Founder & CEO, The Beer Cafe.

At present it is operating in 15 cities including Delhi-NCR, Bengaluru, Mumbai, Pune amongst others.

“We are entering five new cities including Hyderabad, Kolkata, Bhopal, Indore and Jaipur. However, Delhi and Mumbai being top cities will have more numbers,” added Singh.

So far, Beer Cafe has raised equity funds but, now they are looking for debt as equity funds are expensive for long run.

“When you are a start-up it is good, you need money, you raise equity, and you dilute. But, we are at a very balanced and healthy stage and there are two ways to do it, either we go for equity round that means I dilute further but, I don’t want to dilute further as I want to conserve those money,” Singh added further, who believes that debt financing is an advantage because he will raise what he need and not an huge amount from equity.

Though, the brand is doing well in cities like Gurgaon, Mumbai and Delhi, it has still not managed to open a single outlet in Noida or any other part of UP.

“The only store we close so far is Dehradun store, because of the legal frame, license not on time in UP,” added Singh, who is very excited about Noida but, is afraid to enter amid unfriendly licensing policy.

Gurgaon based First Eat, has raised $200K from a serial investor who is an F&B entrepreneur.

Managed by FE Food Tech Pvt Ltd, First Eat offers standardised and affordable healthy meals via its app, on both on demand and subscription basis. 

“The new capital will be used to expand operations in the NCR region, increase traction on the app, and focusing on technology,” shared Mannat Wadehra, Co-Founder, First Eat.

Started by Saikat Bagchi, Shitiz Dogra, Mannat Wadehra and Rishabh Tickoo, November last year, First Eat app allows users to choose meals according to their health requirements.

The app has been downloaded 5000 times, and the start-up claims to serve 80-100 meals daily, with a repeat order rate of 77 per cent.

“We are planning to serve 400-500 meals daily by next quarter,” added Wadhwa.

In the last one year we have seen over 20 food-tech start-ups changing the healthy food dimension in India, and with development on its way, we may see some great deal happening in next few months.  

Shreyans Vijay was an investment banker for nine years and a graduate from IIT-Bombay. He and his wife Ridhima, who was a software engineer and an equities trader, quit their jobs to start this venture. They started their first outlet in Andheri East with a small investment but reached break-even in just four months. Read more about their story:

How did you get the idea for Stuffed?

Finding good food other than typical Indian or Chinese or a Pizza is still a big problem in Mumbai. Even though, people, especially the youth have become more and more globalized, the availability of different cuisines is still missing. Back in the days, we used to travel all the way from Powai to Carter road to have a Shawarma. Then, we thought why not make this amazing dish available to much wider consumers and that’s when we decided to quit our plush jobs and started Stuffed.

Recently you have raised a funding of Rs 2.5 crore. Where can we see those funding to be used?

From a current store count of three, we aim to reach more than 10 stores by mid 2016. So, most of the funding would be used in that expansion. Besides having QSR outlets, we are also working on getting into the pre-packaged food segment. This sector has remained dormant for some time but lately it is seeing improved traction from customers. This will also give us instant access to a much greater geography.

How does Stuffed differ from other brands?

We aim to break out of the monotony that's crept into our food. We give a very refreshing menu to our customers, which at most times are stuck with the usual choices available in the market. One basic philosophy which we have always believed in is that “The food should be fulfilling”, that led to the name ‘Stuffed’.  We are the only restaurant that serves both regular as well as large Shawarmas. The large Shawarma has been introduced keeping in mind the appetite for lunch and dinner. We want to change the notion of Shawarma as a snack. Even the pastas and salads that we serve are more than what you get at more established outlets.

What is the main challenge in operating this business? How do you manage it?

The biggest challenge is of labour. The industry is such that there is extremely high attrition rate of employees. Moreover, with the advent of other new age companies like ecommerce, etc. the cost of labour has gone significantly up. It’s difficult to find skilled employees at the budgets you would have fixed one year back. That’s why we are working on simplifying our processes so much so that even a new employee can get trained in just two days.

What are the cuisines served by you?

We serve a very contemporary cuisine which includes Lebanese, Italian and Fast food. We are largely known for our Shawarmas, Pastas and Salads. We have put in a lot of effort to ensure that our food fits the Indian palate but at the same time does not lose its health quotient.

What is the number of orders that you get presently. And the target in next few months?

Currently, we do more than 100 orders from each of the outlets. The target is to increase the penetration and take this number to more than 200 by December end.

What is your expansion plans?

With the latest round of funding we would be increasing the store count to 12 and getting into the packaged foods segment. Currently, we would like to add most stores in Mumbai only, before going to other cities.

You have raised one million funding from a group of high net worth individuals. Where do you plan to use them?

Currently, we have eight stores in Mumbai, out of which, six of them are company owned and two of them are franchises. We have a plan to go pan- India.

In three months, we will start our franchise model, and also plan to open 400 outlets by next five years.

Funding that we have now will be used in expansion, building a good team and company owned outlets.

How did the idea of starting a ‘Tea Chain’ initiate? What was the initial funding?

We have been studying about tea for four years by now. Three of us, my wife, Ganesh Vishwanathan and myself used to run a company called Bureaucrat, about two years back we sold the stake. From then on, we are looking into opportunities to enter into another business and we are looking at something which is durable.

There are a lot of potentials for cafe markets. Coffee continues to be a very large product in the beverage market, but there is a high level of growth and that will be driven by the younger generation. Opportunity, we believe is extremely big in India. We are so called the tea consuming country and also the second largest producer of tea in the world. India produces the best quality tea and at the right temperature.

There is a large segment of people drinking chai in India and tea consumption in India is much larger compared to coffee. So, we got the idea of cafe, did a lot of research on this as no one has done on it. Around 80 varieties of tea are present in India, then we conceptualised the whole concept of tea.

International tea comes from countries like Japan, China, Turkey, South Africa and the best tea comes from Assam. In India, people understand tea like masala chai, adrak chai what we drink.

Initially, the amount we put in the company was 2crores.

What is the main challenge in operating this business? How do you manage it?

We are still in the learning process. But the great challenge in the retail business is the cost of real estate. Though now everyone is talking about the slowdown process in the real estate market. That is the greatest challenge we have in the market. You have to maximise your cafes and outlets for people who are coming at breakfast time, lunch time or dinner times, so you need to maximise it accordingly. 

How is Tea Trails different from other tea brands?

We believe in competition and it is always good. You can show the best chai or new combinations to your customers. We are not competing with the roadside vendors as they have “cutting chai” kind of thing. In terms of food also, we only serve fresh food. It can also show our potential. We have chosen to franchise and give the best quality of teas to our customers.

What is the current market of Tea business in India? Where do you stand today?

It is somewhere around 20,000 crore market in India and it is still growing. Today, it is predominant by coffee but later by 2020, it will be dominant with tea chains. Today, we are in a very early stage so our growth is negligible. So, definitely in a couple of years, we will be at number 1 position.

What is your total revenue? And what is your target revenue for this fiscal?

I don’t have the exact numbers with me. A lot is opening up. Mainly, I am looking at the expansion plans. By 2016-2017, we are putting in resources and expecting returns in future.

What locations have you earmarked for your future locations?

In terms of location, it will be pan-India. We are doing franchising and in talks with people on franchising. We are also looking at territories like Andhra Pradesh and Tamil Nadu.

Bite Club was brought into existence in 2014 by three young engineers Prateek Agarwal, Aushim Krishan, merely a year after graduating from IIT along with Siddharth Sharma from NTU (Singapore). Bite Club was galvanized to fix the dilemma of access to delectable and appetizing food made with fresh produce. With an intention of solving the million dollar question of ‘What’s for lunch or dinner today’, Bite Club has conceptualized a platform by compiling a community of 100+ chefs spanning home chefs, recipe bloggers, ex- restaurateurs, professional chefs and many more. How the idea of starting Biteclub initiated?

The idea was born in sometime in April and formed towards July. The food was a big problem for all of us. When we are in Mumbai, we had a cook who used to visit us and cook food for us; we get bored of the food. And then we start buying food from outsides like restaurants which proved to be very expensive to us for regular eating.  At home we don’t have to think about anything, quantity and quality is so good. And that’s how this thought was born.

What is the procedure of getting the chef on board with you?

We have our website where the chefs can come and partner with us. We have our own priority, cuisine, production capacity and availability. We share all this to chef and also have a brief session with our internal food team to see on this and give feedback to them.

What is the revenue sharing model between you two?

It is very confidential to our business.

Tell us about the business model?

We work on a daily changing menu. We have both Home chef and professional Chef on board. Customers can download the app and check the menu of the day. We have Schedule and ultimate ordering; they can do up to three days in advance.

Have you also tied up with housewife?

70 per cent of our chefs are home chef.

Are all your chefs are from Gurgaon only or any other cities also?

Currently we are in Gurgaon and later in south Delhi.

What is the percentage of orders you receive from apps and online?

70 per cent of the orders come from app and rest 30 per cent from online. We get over 800 meals order in a day, both lunch and dinner (combine).

According to you, what is the peak time for ordering of food?

We deliver only on peak time. 12-4 PM lunch and 7-10 dinner.

What is your expansion plan?

We are planning to enter in other categories like homemade foods as they are the best high shelf items. Geographical expansion will be Delhi-NCR and then head towards metro cities and later every city of India.

You have also raised funding recently. Where can we see those investments going?

The funding will be used in hiring great talent, building great technology and driving smooth operation.

Who are your target competitors in the business?

We see local and small restaurant chains as our competitors.

What is the major logistics challenge faced by the start-ups like you?

Infrastructure in India is broken, demand and supply are not equal, roads are weak and getting workforce for delivery in a competitive market like India is the major challenge.

What is the no of order you are targeting say in next two months?

1200-1500 orders by August-September

Are you planning for second round of funding?

Yes we are in talk with the investors for Series A investment.  You will get to know when it happens.

FreshMenu, an online food player that delivers fresh meals prepared at its kitchen, has raised $17 million in Series B funding led by Zodius Technology Fund.

The transaction was initiated by Signal Hill India, with participation from existing investor Lightspeed Venture Partners.

Through its full-stack model, the company controls the entire customer experience from online and mobile ordering, to great fresh food preparation and timely delivery.

Standing strong

In a sector that has seen significant shake out in 2015, Freshmenu’s product market fit, stellar growth and margin profile made the Company break-out from the pack.

With this significant Series B funding round, the company will focus to continue its rapid growth trajectory.

Food Vista India Pvt. Ltd, which runs FreshMenu, is expected to use the money raised to expand geographically, strengthen technology and add more cloud kitchens.

The Bengaluru-based FreshMenu was founded in 2014 by IIM Ahmedabad alumni Rashmi Daga, who formerly worked with cab aggregator Ola and online jewellery store Bluestone.

Future prospects

The food delivery sector is expected to be a $50 billion market by 2020 and there is a strong case to build a national mobile and online-first food tech company in India. Freshmenu will use funds from this round to expand operations across the top six cities in India, and further its investments in brand building, tech and people.

In the year2014-2015, Indian start-up ecosystem has brought a storm in the food service market. Start-ups who are present mainly in online raw meat have raise funding and investments. For instance Zappfresh has raised Rs 2 crore ($300,000) in angel round of funding from a couple of unnamed investors. Similarly, Licious has raised a seed investment of about $ 1 million. The investment has been made by Mohandas Pai (Former CFO Infosys), Kanwaljit Singh of Helion Venture Partners along with few other investors.

According to reports, India is the second largest egg and third largest broiler-chicken producer in the world — 65,000 million eggs and 3.8 million tonne of poultry meat a year. The market is estimated to be worth about Rs 90,000 crore. Presently, analyst reported that urban markets account for about 80 per cent of demand, but rural demand to pick up significantly, thanks to lower chicken prices, improving prosperity and changing lifestyles, helping the sector post at least 8-10 per cent expansion.

“India is evolving and all the government initiatives and overall start-up scene in India is booming. When it comes to new age food businesses, consumer is the king and customers are going to be the cynosure of the game. Moreover, our model enhances the customer experience a great deal and that is what serves right to eliminate the pain point of going the filthy portals of traditional meat shops and have a “fresh” new experience” comments Deepanshu Manchanda, ‎Co-Founder & CEO at Zappfresh.

The model

Meat intake in India is at a large scale. So, the starts-ups or the brands have to see what are the opportunities to develop in this business or strategies that they can incorporate in this.

On the same note, Abhay Hanjura, Founder & CEO at Licious shares, “Licious will add tremendous value to the life of a meat lover, there are various aspects that a consumer is bound to love which includes choice of custom cuts, convenience of having all meats in one basket including seafood & cold cuts and the guarantee of germ, insect and contamination free 'fresh' and not frozen meat, powered by the promise of instant delivery with various payment options and easy returns made accessible by new gen-tech solutions.”

At the same time, Licious has partnered with hyper local delivery start-up Grofers in October to scale up its reach across the city and ensure delivery of fresh vacuum-packed meat and fish within 90 minutes of placing an order.

Recently, Zappfresh has tied up with PepperTap, hyper local grocery delivery Services Company to sell non-vegetarian items such as fresh pork, chicken and mutton especially to residents of Gurgaon. This partnership will work on the inventory led mode. Cold storage and stock facilities will be handled by Zappfresh and PepperTap will ensure the last mile delivery of meat products through its logistics network. Manchanda adds, "We are planning to sell seafood with them. We are really excited about the alliance as this will help us extend our product line to PepperTap's user base.”

Seeing to these hyper local grocery deliveries services company, even BigBasket sells items such as meat, beef and pork to their customers. Thus, India's will see double the growth in this sector by 2016 because of high prices and increasing demand of the product.

Sanjeev Kapoor together with Ravi Saxena, Co-Founder of Kitchen appliance maker Wonderchef and two global partners has invested around $2 million in home-cooked start up ZuperMeal.

The company was started by Saxena’s wife Pallavi Saxena together with Prabhakar Banerjee and Balasubramanian A, both engineers and Indian Institute of Management graduates.

According to Kapoor women empowerment and skill development are key priorities outlined by Prime Minister Narendra Modi, ZuperMeal helps Indian women to use their skills to make money and take pride that their food is recognised.

"Our idea of empowering homemakers through ZuperMeal is not just transactions, but we will also teach them. Ultimately, this is a skillset and product that they already have and we are enabling them to earn through it," shared Kapoor.

The group which has about 300 home chefs listed with them on the website of which 100 is active chefs, targets to expand its services around the city with the fund raised. 

“We are building our operations, marketing and team. In the first phase of expansion we should cover whole Mumbai then Navi Mumbai and Thane,” added Banerjee, one of the co-founder with ZuperMeal.

The group is also targeting to reach about 500 cities in next three years time partnering with around 60000 home-chefs in these cities.

"ZuperMeal is not a delivery service alone. It is a complete food business where the best talent is identified, their best dishes are curated, priced and presented by us," said Pallavi who is the women behind the start-up.

On asking about the number of orders it get, Banerjee added that, “On average we get 70 orders a day which goes up to 92-95 some other day. So there is no fix number, the orders are generally between 70-100 with a return ration of 15 per cent.”

ZuperMeal is betting the concept of 'eating out at home' will provide an alternative to eating out by delivering fresh, home-cooked food at the customer's doorstep without additives or preservatives.

"Through this strategic investment, ZuperMeal has the opportunity to leverage the strong network of 35,000 women entrepreneurs of Wonderchef and scale-up quickly across the country," said Saxena of Wonderchef. These women entrepreneurs are part of Wonderchef's network of appliance sellers.

The food business scenario in India has attracted the investors as never before in the last few months, citing almost $ 110.5 million investment in about a month. Brands like Box8, Spoonjoy, EatTreat, foodpanda, and Veeba foods hold the investors’ pulse, with their business expansion opportunity occurring in the country. 

Box8, a Mumbai-based on-demand food delivery Company, has raised Rs 21 crore in Series A funding from Mayfield headquartered in Silicon Valley. The funds raised will be used to build a seamless customer experience across its mobile and web platforms.

Commenting on the same, Amit Raj, Co-founder, Box8 said, “We keep only one thing in mind when we make our food; that we would only serve food that we enjoy eating.”

Serving food on weekly parameters, SpoonJoy, the weekly subscription-based online platform that serves to get healthy and delicious meals right at customer’s doorsteps, has raised $1 million from SAIF Partners. Earlier, in December 2014, the online food delivery portal had raised an undisclosed amount from Flipkart Co-founder and CEO Sachin Bansal and chief product officer Mekin Maheshwari, with participation from Sahil Barua, Co-founder of Delhivery and Abhishek Goyal, founder of Tracxn. But with the current round of funding, the food service platform is planning to take its services to cities like Delhi-NCR and Mumbai, which has always been a global food imitator.

On the other hand, foodpnada, the global major in food delivery business has raised USD 100 Million in funding led by Goldman Sachs targeting at expanding its own delivery activities and improve overall customer experience across its 40 markets.

Ralf Wenzel, Co-Founder and CEO of foodpanda Group said: “We are very happy about the recent support from Goldman Sachs Investment Partners, with its deep expertise in online marketplaces, and which, together with our renowned group of investors, will allow us to build the leading mobile food delivery marketplace in Emerging Markets targeting over 3 billion consumers. The Emerging Markets represent the largest opportunity in online food delivery and we are committed to create the most convenient way for ordering and delivering food.” 

At the same time, Speciality food venture Veeba Foods, has raised US $6 million in funding led by Saama Capital and DSG Consumer Partners as lead investors. Founded in 2013 by Viraj Bahl, who prior to this was part of the family that owned Fun Foods, Veeba specialises in the specialty foods that include sauces, dressings, preserves etc, for both institutional customers, like international brand name restaurants and coffee bar chains, and the retail consumer.

Likewise, EatTreat, started as Facebook group back in 2014, when Co-founder Arjun Sawhney—a self-confessed foodie with an insatiable appetite—felt the need to start a dialogue that would educate and empower the online community by engaging them in discussions about food has raised USD 350,000 from a group of angel investors.

Hence, we could see that Indian food industry with lots of potential and trends on the way is looking towards disruption of the food business scenario in India seeking exciting opportunity both from shareholders and the investors.

In last two months, the funding scenario has made new inroads into the food business trends. With food tech start-ups and innovative food players gaining investors attention, food business has seen more than a two dozen food players raising funds and entering into a new era of development and expansion.

Chaayos, the Gurgaon based tea chain has raised $5 million from Tiger Global with participation from Ola Founders Bhavish Agarwal and Ankit Bhati.

Founded in November 2012 by IITians Nitin Saluja and Raghav Verma, this is the first round of institutional funding by the tea chain.

"Consumption of chai is ten times that of coffee in India and is growing at a fast clip. We aim to be India's biggest chai company and want to be present across formats and forms. We have designed innovative kettles that can deliver a litre of chai, keeping it hot for an hour and a half. Presently, we deliver chai and food across Gurgaon but are looking to strongly grow this segment,” shared Verama, Co-Founder, Chaayos.

With this investment, the tea chain is planning to expand its services to Mumbai, Bengaluru and Delhi-NCR with opening of more than 50 outlets.

“We will also use the freshly raised funds for pushing our delivery service through mobile app”, added Verma.

Besides pushing its chai-on-demand service, Chaayos will also focus on retailing its packaged tea blends, which it introduced a few months back, in partnership with Amazon, Big Basket, Grofers and the recently launched Ola Cafe.

Chaayos retails tea leaves, which it sources from tea estates to create its own blends.

Not only this, recently there are many other players in the same segment who are eyeing a big slice of the Indian ‘tea’ market including Tea Box backed by Accel Partners, JAFCO Asia, Dragoneer Investment Group and Chai Point funded by Saama Capital-funded.

DSM Fresh Foods Pvt Ltd based on Gurgaon, which runs Zappfresh an online start-up for raw meat and associated ready-to-eat food products, has raised Rs 2 crore from angel investors.

The company plans to use the money to upgrade the technology and expand its services to new cities.

Zappfresh offers a wide variety of items including whole chicken, mutton and pork. Now, it is also planning to introduce seafood category soon.

Zappfresh procures meat from the farms and claims that it ensures the product reaches the end customer in 90 minutes once the order is placed on its portal.

Currently, the firm is operational in Gurgaon and south Delhi, though it charges for small ticket delivery outside Gurgaon.

Launched by Deepanshu Manchanda and Shruti Gochhwal former MobikWik employees four months ago, Zappfresh competes with Bengaluru based Licious which has raised funding last week.