Kitchens@ Secures $65M in Series C Funding for Cloud Kitchen Expansion

Kitchens@ is a cloud kitchen startup, secured $65 million from Finnest, a London-based private equity firm, in its Series C funding round.

Kitchens@ announced in a press release that the raised funds will support the expansion of their hybrid model, Dinerium, which combines offline and online components.

Prior to this funding round, Kitchens@ had secured $17.5 million from investors such as Trifecta, Beenext, DG Ventures, and other contributors.

Kitchens@ is headquartered in Bengaluru, offers comprehensive solutions to F&B brands seeking expansion, providing a range of services from infrastructure and technology to operational support.

Collaborating with various food brands like Domino’s, Subway, Taco Bell, Nando’s, ChicKing, and national chains such as ITC, Mainland China, and Barbeque Nation, it facilitates their growth.

In May 2022, Kitchens@ revealed its integration with Kitchens Centre, a company based in Delhi.

Earlier this year, it completed an acquisition of Swiggy’s Access Kitchens business through a share swap agreement.

According to Kitchens@ CEO Junaiz Kizhakkayil, this acquisition will aid in the company's expansion across four cities, encompassing 52 locations and over 700 kitchens.

The company mentioned that the acquisition would result in a combined yearly Gross Merchandise Value (GMV) of $65 million (approximately Rs 520 crore) for Kitchens@.

Additionally, Kitchens@ is striving to achieve a revenue target of $100 million (around Rs 800 crore) within the upcoming six months.

Although Kitchens@ hasn't submitted its annual financial report for the fiscal year 2022-2023, it documented a revenue of Rs 37.37 crore in the preceding fiscal year. However, it incurred a loss of Rs 43.15 crore during the same period.

This funding round marks a significant milestone for a cloud kitchen brand in 2023. In April, Curefoods secured $36.5 million, with primary backing from Three State Ventures, spearheaded by Binny Bansal. Notably, Rebel Foods emerged as the dominant contender in this sector, achieving unicorn status following a $175 million funding round in October 2021.

Finnest, the primary investor, is a growth investment firm led by Biswanath Patnaik, known for supporting early-stage investments.

The firm directs its investments towards startups concentrated in banking, healthcare, consumer products, fintech, and renewable sectors.