Restaurant India News: Paradise Biryani Eyes Rs 100 Crore Funding to Accelerate Expansion Across India

Paradise Biryani is preparing to raise around Rs 100 crore to support its expansion plans and strengthen its presence across key urban markets, according to a report by The Economic Times.

The report stated that Samara Capital, which owns Paradise Food Court, is currently in discussions with multiple Indian family offices for the proposed fundraise. As part of the transaction, Samara is expected to dilute around 10-12 percent stake in its 12-year-old portfolio company to onboard a new investor. A senior executive confirmed the development to The Economic Times.

The fresh capital is expected to be deployed largely towards expansion. Abhik Mitra, Managing Director and Chief Executive Officer of Paradise Biryani, told The Economic Times that the company is pursuing an aggressive growth strategy. The brand is planning to open 100 new outlets over the next three years.

At present, Samara Capital holds 100 percent ownership in Paradise Food Court. The Economic Times noted that the firm initially acquired a 35 percent stake in 2014 for Rs 70 crore, followed by the purchase of the remaining 65 percent from the promoters for Rs 400 crore in 2022.

Paradise currently operates approximately 57 outlets across Hyderabad, Bengaluru, Chennai, Vijayawada, Visakhapatnam and Gurugram. With annual revenue of around Rs 300 crore, the company is now looking to expand into additional markets, including Pune, Kolkata, New Delhi, Guntur and Warangal. This expansion is expected to take the overall network to nearly 160 outlets within the next three years, as per The Economic Times report.

The planned fundraise comes at a time when the biryani category is seeing increased momentum, driven by higher online food delivery demand, improving consumer spending patterns and a shift towards organised food service brands. The Economic Times also highlighted that in 2021, the family office of the Havells Group invested in Dindigul Thalappakatti at a valuation of Rs 860 crore, where CX Partners holds a majority stake.