Summary Points:
- Devyani International to acquire majority stake in Biryani By Kilo (BBK)
- Deal terms undisclosed; equity issuance pending board and shareholder approvals
- BBK previously raised $2 Mn (approx. Rs 16.6 Cr) from Pulsar Capital in 2023
- BBK cut net losses by 30% in FY24 with Rs 268.3 Cr revenue
- Devyani runs over 2,000 QSR outlets across India and abroad
- Move comes amid rising competition from Rebel Foods, Sapphire Foods, and Wow! Momo
Devyani International, the operator of global quick-service restaurant (QSR) chains like KFC and Pizza Hut in India, is set to acquire a controlling stake in popular cloud kitchen startup Biryani By Kilo (BBK). The acquisition will further diversify Devyani’s portfolio and boost its presence in the rapidly growing food delivery and cloud kitchen space.
In a stock exchange filing, Devyani said its board of directors will meet on April 24 to approve the definitive agreement and issuance of equity shares related to the transaction. These shares will be issued as part of the acquisition payment, but will require approval at an upcoming extraordinary general meeting (EGM).
The financial terms of the deal have not yet been disclosed.
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About Biryani By Kilo: Strong Growth Despite Losses
Founded in 2015 by Vishal Jindal and Kaushik Roy, Biryani By Kilo has carved a niche with its traditional dum biryanis served in handi, alongside offerings like kebabs, kormas, and desserts.
Key Facts:
- Total capital raised: Rs 432 Cr ($52 Mn)
- Major investors: IvyCap Ventures, Falcon Edge Capital
- Previous valuation: Rs 832 Cr ($100 Mn) after 2023’s Rs 16.6 Cr ($2 Mn) funding from Pulsar Capital
- Outlets: 100+ across 45 cities including Delhi-NCR, Bengaluru, Hyderabad, and Kolkata
- FY24 revenue: Rs 268.3 Cr, up 23% from Rs 218.1 Cr in FY23
- Net loss in FY24: Rs 70.81 Cr, reduced from Rs 100.7 Cr in FY23
Despite continuing losses, BBK’s performance shows steady revenue growth and improving efficiency—making it an attractive asset for large food retail groups.
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Devyani International’s Global QSR Reach
Devyani International, established in 1991, has become a dominant franchisee for brands like KFC, Pizza Hut, and Costa Coffee.
It boasts:
- 2,000+ restaurants
- Presence in 4 countries – India, Nepal, Nigeria, and Thailand
This strategic acquisition is expected to further strengthen Devyani’s hold on India’s Rs 3.6 lakh crore ($43.5 Bn) quick commerce and QSR market, which is projected to grow significantly by 2030.
Fierce Competition in India’s Cloud Kitchen Segment
The BBK acquisition comes at a time of intense competition in the space. Just recently:
- Rebel Foods, owner of Behrouz Biryani, raised Rs 212.7 Cr ($25 Mn) from Qatar Investment Authority, at a $1.4 Bn valuation
- Rebel Foods is reportedly gearing up for a public listing in FY26
- Sapphire Foods and Wow! Momo are also aggressively expanding in the segment
As eating habits shift and cloud kitchens become central to urban consumption, strategic acquisitions like these are becoming critical for market leaders.
Devyani’s move signals a deeper bet on Indian taste preferences and the scalable nature of digital-first food brands. If the acquisition delivers on growth and operational synergy, it could be a case study in how traditional QSR giants adapt to cloud kitchen dynamics
