Restaurant India News: Truffles in Talks With PE Firms for Stake Sale at Rs 800 Crore Valuation

Bengaluru-based restaurant chain Truffles is in discussions with multiple private equity firms for a potential stake sale, according to people aware of the matter. The deal process has reportedly been active for some time, with several investors evaluating the opportunity.

“The deal has been in the market for quite sometime now and several PE firms have been tapped,” one of the people cited above said. The transaction may involve the promoters divesting either a significant minority stake or a majority stake, depending on the final investor and deal structure, another person familiar with the development said.

“The deal will likely value the overall company at about 3-4x revenue multiple which translates to nearly Rs 800 crore,” a third person said, confirming the details.

The development comes at a time when India’s food services industry continues to attract investor attention. The country’s Rs 80-billion food services market is expected to grow at a 10–11 percent CAGR through 2030, supported by the rapid expansion of organised restaurant brands, growing adoption of online food delivery, and the scaling up of branded dine-in formats. In the competitive landscape, Truffles operates alongside chains such as Leon Grill, Meghana Foods, Third Wave Coffee, and Theobroma.

Founded by Avinash Bajaj and Ruby De, the company currently operates around eight outlets and three cloud kitchens in Bengaluru, according to information available on its official website. Its offerings include burgers, coffees, fries, desserts, and pasta-based dishes.

Financial filings sourced from Tofler through the Ministry of Corporate Affairs show that Truffles reported operating revenue of Rs 159.1 crore in FY25, compared to Rs 140.3 crore in the previous fiscal year. Profit remained largely unchanged at Rs 17 crore during the same period.

If the proposed fundraising is completed, the company is expected to use the capital to expand operations and enter new markets, one of the people cited above added.

The broader hospitality and food retail sector has also witnessed increased consolidation activity in recent months. Listed operator Sapphire Foods India is preparing to merge with Devyani International in a deal estimated at nearly a billion dollars. Devyani International has also announced plans to acquire Biryani By Kilo, while Wow! Momo raised capital from Singularity in December.