Restaurant India News: Dil Foods Raises Rs 72 Crore to Expand Regional Cuisine Brands Across India

Dil Foods has secured Rs 72 crore in its Series B funding round as the company looks to expand its regional cuisine portfolio and strengthen its food-tech and cloud kitchen operations across India’s growing digital food delivery market.

The funding round was led by the Bikaji Foods Family Office along with international funds, with participation from existing investors V3 Ventures, Alteria Capital and MJV Ventures. With the latest investment, the company’s total funding has reached Rs 113.35 crore, including nearly Rs 37.7 crore raised through its earlier seed and Series A rounds.

Dil Foods operates a virtual restaurant and regional cuisine platform focused on digitally distributed food brands. The company currently runs nine regional food brands across six cities and serves customers across 340 pincodes. Its business model combines cuisine-focused brands with backend operational infrastructure and supply chain support for restaurant partners.

The company said it has expanded into new cities since its last funding round while strengthening operations in existing markets. It has also broadened its restaurant partner network and introduced new cuisine categories in response to changing consumer demand for regional Indian food formats.

Arpita Aditi, Founder, Dil Foods, said, “Dil Foods has always been built on the idea of creating a sustainable ecosystem in the food industry. This funding will help us double down on that belief and capture a larger share of the consumer’s plate. With this capital, we aim to scale to 600 locations by FY28 and reach an annualized revenue of Rs 500 crore. A significant portion will also go into strengthening our backend production and supply chain. Last year, we set up one of Bangalore’s largest central kitchens, spanning over 1 lakh sq ft, and this is just the beginning.”

Arjun Vaidya, Founder, V3 Ventures, said, “We backed Dil Foods three years ago at a very early stage when they were at just 30 locations, and the 30X scale they’ve achieved since then has been remarkable. What’s even more impressive is how they’ve combined that growth with strong capital discipline and a model that’s genuinely differentiated in the cloud kitchen QSR space. They are probably the most capital-efficient business in the cloud kitchen QSR space in India. What I love is that Dil is building regional heroes. From a leading khichdi brand to a strong Bihari cuisine play and a fast-growing chole brand, it’s a clear sign of where India’s tastes are heading towards embracing regional flavours in a big way. They’re not just growing fast, Dil Foods is giving consumers their home favourites in an easy-to-access digital way - this impact makes it an even more interesting investment.”

Deepak Agarwal, Managing Director, Bikaji Foods International Limited, said, “Having built Bikaji on the foundation of bringing authentic Indian flavours to people across the world, this investment in Dil Foods feels especially meaningful to us. We see in their journey a shared passion for regional cuisine and a deep understanding of how consumer preferences in India are evolving. What stands out is their ability to blend culinary authenticity with a modern, scalable approach to distribution. As they continue to expand their footprint and portfolio, we are excited to support them not just as investors, but as strategic partners who believe in the same larger vision of taking India’s diverse food culture to more plates, more consistently and more efficiently.”

Mohammed Ali Shariff, Partner, Mount Judi Ventures, added, “This isn't a cloud kitchen play, it's a distributed virtual brand network built on infrastructure that already exists. Arpita and the team have turned the restaurant industry's biggest inefficiency into their moat, growing aggressively while keeping profitability at the core. This round sets them up to do it on a national scale.”

Dil Foods said the fresh capital will be used to expand its cuisine portfolio, strengthen backend production systems, optimise supply chain operations, and enter additional high-growth markets as regional cuisine demand continues to rise across food delivery platforms in India.