In a move that signals deeper penetration into India’s fast-growing biryani and kebab delivery market, Devyani International Ltd (DIL), the franchisee behind quick service restaurant (QSR) chains like KFC, Pizza Hut, and Costa Coffee, has announced plans to acquire a majority stake in Sky Gate Hospitality—operator of the homegrown restaurant chain 'Biryani by Kilo'.
According to a regulatory filing, the acquisition will give DIL control over Sky Gate’s existing portfolio, including 'Biryani by Kilo' and several other smaller brands and cloud kitchen formats. The acquisition price and number of shares involved have not been disclosed yet.
"We wish to inform you that a meeting of the Board of Directors of the Company is scheduled on Thursday, April 24, 2025 inter-alia, to consider and approve the definitive agreements and issuance of equity shares of the company on a preferential basis to discharge the consideration payable for acquisition of controlling equity stake in Sky Gate Hospitality Private Limited, operating restaurants under the brand 'Biryani by Kilo' and other brands."
Established in 2015,' Biryani by Kilo' currently operates over 70 dine-in outlets across multiple cities in India. The brand is known for its delivery-focused model and product consistency in the biryani and kebab segment.
DIL, promoted by the Jaipuria family, continues to scale its presence in the QSR space and holds a strong franchise portfolio. It is the largest franchisee in India for Yum Brands, the global parent of KFC and Pizza Hut. The company is also the exclusive India franchisee for Costa Coffee, a brand owned by Coca-Cola. Additionally, it owns and operates Vaango, its proprietary South Indian vegetarian food brand.
As of December 31, 2024, DIL’s footprint includes over 900 KFC outlets and more than 580 Pizza Hut stores spread across India, Nepal, and Nigeria. Costa Coffee operates with over 190 cafes in India under DIL’s management, alongside more than 70 Vaango locations.
This acquisition reflects DIL’s continued strategy to diversify and deepen its offerings in the organized food service sector, particularly within high-growth, delivery-oriented categories like biryani.