London-based private equity firm Finnest has acquired a majority stake in Bengaluru-based cloud kitchen startup Kitchens@.
The board of Kitchens@ passed a special resolution to issue 4,000,000 equity shares at Rs 3,000 each, raising Rs 1,200 crore ($145 million), according to a regulatory filing sourced from the Registrar of Companies. Additionally, the board issued 450,000 Series C CCPS at Rs 3,000 each, amounting to Rs 135 crore ($16 million).
This latest investment brings Finnest’s total stake in Kitchens@ to 53.75%, effectively making Kitchens@ a subsidiary of Finnest Holdings. The recent Rs 1,200 crore funding round follows a $65 million Series C round led by Finnest in December last year, with the Rs 135 crore likely being part of that tranche.
Fintrackr estimates the post-allotment valuation of Kitchens@ at approximately Rs 2,114 crore ($255 million). Founded in 2018, Kitchens@ offers turnkey solutions for F&B brands, providing infrastructure, technology, and operational services. The startup collaborates with several prominent food brands, including Domino’s, Subway, Taco Bell, Nando’s, ChicKing, ITC, Mainland China, and Barbeque Nation.
In early 2023, Kitchens@ acquired Swiggy’s Access Kitchens business through a share swap deal, setting a target to expand across four cities with 52 locations and over 700 kitchens. Kitchens@ demonstrated strong growth in FY23, with revenue from operations increasing by 67% to Rs 62 crore, compared to Rs 37 crore in FY22. However, losses stood at Rs 27.3 crore for the same period. The company has not yet filed annual results for FY24.
Kitchens@ competes with other players in the cloud kitchen sector, including Rebel Foods, Curefoods, EatClub, Biryani By Kilo, FreshMenu, Biryani Blues, Bigspoon, Dil Foods, Ghost Kitchens India, and HOI Foods.
This significant investment from Finnest will enable Kitchens@ to further expand its footprint and enhance its service offerings, solidifying its position in the rapidly growing cloud kitchen market.
Source: Entrackr
