House Of Biryan Nets INR 32 Cr To Expand Cloud Kitchen Play

SUMMARY

With the fresh capital, the startup plans to expand into tier-I cities, while also scaling up globally

Founded by chefs Mohammed Bhol and Mikhail Shahani in 2022, House of Biryan is a cloud kitchen startup offering biryani alongside pizza, sushi, and burgers

House of Biryan opened its first international cloud kitchen recently in Dubai, with Australia, Japan, the UK and North America next in the pipeline

Foodtech startup House of Biryan has raised INR 32 Cr (around $3.6 Mn) in a growth round.

The round saw participation from Bestvantage Investments, along with former Indian skipper MS Dhoni, former CVC Capital Partners’ MD Mohit Goyal, Al Siraj Holdings’ chief investment officer Abhineet Singh and industry veterans from SoftBank, Kedaara Capital and APAX Partners.

With the fresh capital, the startup plans to expand into tier-I cities, while also scaling up globally.

Founded by chefs Mohammed Bhol and Mikhail Shahani in 2022, House of Biryan is a cloud kitchen startup offering biryani alongside pizza, sushi, and burgers. HoB claims to have served over 2.8 Mn customers and fulfilled 4.9 Mn orders till date.

“This round fuels our ambition to scale from 22 kitchens today to 120–150 outlets over the next three years, targeting revenues of INR 450–550 Cr,” Bhol and Shahani said in a joint statement.

The startup is currently operating 22 kitchens across Mumbai, Delhi and Dubai. It claims to have achieved an ARR of INR 50 Cr and “is already EBITDA-positive in its core markets, a rare feat in the food-tech ecosystem,” as per its statement.

House of Biryan opened its first international cloud kitchen recently in Dubai, with Australia, Japan, the UK and North America next in the pipeline.

The startup, which initially focused on traditional biryanis in regional flavours, has since diversified its menu with a wider range of Indian delicacies to cater to a broad consumer base. It competes against Biryani By Kilo, Behrouz Biryani and The Biryani House.

It last raised INR 12 Cr in July last year and has cumulatively secured INR 45 Cr to date.

The Changing Face Of India’s Foodtech Landscape

India’s foodtech space is rapidly transforming, with evolving consumer choices, digital advancements and convenience-driven demands leading the way. The surge of online food delivery, the rise of cloud kitchens and the growing preference for personalised and health-oriented meals are at the forefront of the change.

The Indian food and beverages market size was valued at $332 Bn in 2023, and the total Indian food and beverages revenue is expected to grow at a CAGR of 11.05% from 2024 to 2030, reaching nearly $691.47 Bn by 2030. Food & beverages are India’s fastest-growing industries, supported by a vast raw material base, as per Maximize Market Research.

Meanwhile, the sector is witnessing fresh competition with the government pushing ONDC’s revival and Rapido challenging the Zomato-Swiggy duopoly.

Also, the government is setting up a dedicated fund of INR 200–250 Cr to incentivise restaurants to join the ONDC and boost its sluggish order volumes.

Besides, Rapido is quietly building its food delivery platform, Ownly. The ride-hailing giant has finally unveiled its food delivery platform, partnering with restaurants affiliated with the National Restaurant Association of India (NRAI). Ownly has gone live in pockets of Bengaluru a few days ago.

The broader food delivery sector is experiencing a slowdown, with Swiggy and Zomato seeing pressure on their margins.

In the cloud kitchen segment, Curefoods, which filed its DRHP in June, is likely to become the first cloud kitchen startup to hit the bourses. Its closest rival and bigger player, Rebel Foods, is also aiming at a public listing sometime next year.