Bengaluru-based cloud kitchen startup Kitchens@ is now primarily owned by London-based private equity firm Finnest.
According to Kitchens@’s regulatory filing, which was obtained from the Registrar of Companies, the board approved a special resolution to issue 40,00,000 equity shares at a price of Rs 3,000 each in order to raise Rs 1,200 crore, or $145 million.
In addition, the board issued 4,50,000 more Series C CCPS at an issue price of Rs 3,000, for a total of Rs 135 crore.
It’s important to remember that Kitchen@ has raised Rs 1,200 crore ($145 million) in this new round, with the remaining Rs 135 crore ($16 million) most likely coming from the December 2018 announcement of a $65 million Series C round led by Finnest.
Finnest now owns 53.75% of Kitchen@ shares following the new investment, per the filings. In other words, Kitchens@ will become a Finnest Holdings subsidiary.
According to media estimates, the post-allotment valuation of the company is approximately Rs 2,114 crore, or $255 million.
Established in 2018, Kitchens@ offers turnkey solutions, encompassing infrastructure, technology, and operation services, to F&B brands to help them grow their footprint. It collaborates with a number of food brands, including national chains like ITC, Mainland China, Barbeque Nation, and Taco Bell, as well as national chains like Domino’s, Subway, and Taco Bell.
Swiggy’s Access Kitchens division was purchased by Kitchens@ in early 2023 through a share exchange. Kitchens@ set out to increase its presence in four cities, 52 locations, and over 700 kitchens following the acquisition.
With a 67% increase in operating revenue from Rs 37 crore in FY22 to Rs 62 crore in FY23, Kitchens@ showed strong growth in FY23. Additionally, during that same time period, its losses totaled Rs 27.3 crore. FY24 annual results have not yet been filed by the company.
This product is in competition with the following brands: Bigspoon, Dil Foods, Ghost Kitchens India, EatClub, Biryani By Kilo, FreshMenu, HOI Foods, Rebel Foods, and Curefoods.
