We are discussing Finnest Acquired a Majority of the Stake in Kitchens@ for $145 Million:
Finnest is a private equity company based in London that acquired a major stake in a cloud kitchen startup, Kirchens@, based in Bengaluru, for $145 million. Kitchens@ secured $65 million in/ // its series C round led by Finnest. The startup previously secured $145 million in its fresh funding round. The company provides solutions to F&B brands to help them expand their market presence, enhance infrastructure and operation services, meet market demand, and advance their technologies.
The board has approved a resolution to allot 40,00,000 equity shares at an issue price of Rs 3,000 each to raise $145 million. According to the regulatory filing, the board also passed a resolution to allot 4,50,000 series C CCPS at an issue price of Rs 3,000 to raise Rs 135 crore. The company will use these fresh proceeds to scale up operations, enhancing its platform, working capital purposes, and market expansion. The company claims to have clients including Domino, subway, Nando, Taco Bell, and national chains, including Barbeque Nation and Mainland China.
After this funding round, the private equity firm Finnest owned 53.75 percent of the total share in Kitchen@, making it the largest stakeholder of the firm. This will make the startup a subsidiary of Finnest Holdings. According to a report by Fintrackr, the startup has a post-allotment valuation of around 255 million USD. The company plans to expand its network in more than 52 locations across four cities and establish over 700 kitchens.
This investment from Finnest shows investors’ trust in the startup’s market potential and business model. The startup announced a 67 percent increase in its revenue to Rs 62 crore in FY23. While the losses also increased to Rs 27.3 crore in the same duration. The company competes with other cloud kitchen companies, including Curefoods, EatClub, Rebel Foods, Biryani By Kilo, Bigspoon, Dil Foods, HOI Foods, and Biryani Blues. This acquisition will help Kitchens@ grow and incorporate Finnest Holding’s technology to aim for market expansion. This acquisition will benefit both companies and enable them to integrate their technologies.
Conclusion
Kitchens@ is a cloud kitchen startup based in Bengaluru that offers cloud kitchen service. This startup was acquired by a private equity firm, Finnest, for $145 million. The startup previously secured 145 million USD in its fresh funding round and raised $65 million in two tranches from its series C led by Finnest Holdings. The board has approved a special resolution to allot 40,00,000 equity shares at an issue price of Rs 3,000 each to raise $145 million. The board members also passed another resolution to allot 4,50,000 series C CCPS at an issue price of Rs 3,000 and raise Rs 135 crore.
The company plans to use this investment to scale up operations, enhance its platform, increase its customer base, meet working capital needs, and expand the market. After this round, Finnest became the largest stakeholder of kitchens@ with 53.75 percent. This startup has a post-allotment valuation of around 255 million USD. The company plans to expand its network in more than 52 locations across four cities and establish over 700 kitchens. This Bengaluru-based startup competes with other cloud kitchen companies, including Curefoods, Rebel Foods, Bigspoon, Biryani By Kilo, Dil Foods, HOI Foods, EatClub, and Biryani Blues.
