London-based private equity firm Finnest has secured a majority stake in Bengaluru-based cloud kitchen startup, Kitchens@, following a substantial investment of $145 million.
The acquisition was finalized through a special resolution passed by Kitchens@’s board, which approved the issuance of 40,00,000 equity shares priced at Rs 3,000 each, raising approximately Rs 1,200 crore.
Founded in 2018 by Junaiz Kizhakkayil and Saurabh Jha, Kitchens@ specializes in providing comprehensive solutions to food and beverage brands seeking to expand their footprint.
Additionally, Kitchens@ issued 4,50,000 Series C CCPS at an issue price of Rs 3,000, amounting to Rs 135 crore. This funding round marks a significant step for Kitchens@, with the remaining $16 million from the total investment being part of a previous $65 million Series C round led by Finnest in December.
Post-investment, Finnest now holds 53.75% of Kitchens@’s shares, consolidating its position as the majority stakeholder and making Kitchens@ a subsidiary of Finnest Holdings. Following the investment, Kitchens@ has been valued at approximately Rs 2,114 crore or $255 million based on recent estimates.
The startup offers end-to-end services including infrastructure, technology, and operational support, catering to a diverse range of clients such as Domino’s, Subway, Taco Bell, and national chains like ITC and Barbeque Nation.
In a strategic move last year, Kitchens@ acquired Swiggy’s Access Kitchens business through a share swap, significantly enhancing its operational reach. Post-acquisition, Kitchens@ set ambitious expansion targets, aiming to establish a presence in four cities across 52 locations with over 700 kitchens.
Despite facing competition from industry players such as Rebel Foods, Curefoods, and FreshMenu, Kitchens@ demonstrated robust growth in FY23, achieving a 67% increase in revenue from operations to Rs 62 crore, up from Rs 37 crore in FY22.
However, the company reported losses amounting to Rs 27.3 crore during the same fiscal year. The company is yet to disclose its annual financial results for FY24.