London-based private equity firm Finnest has acquired a majority stake in Bengaluru-based cloud kitchen startup, Kitchens@, through a substantial investment. The board at Kitchens@ passed a special resolution to issue 40,00,000 equity shares at Rs 3,000 each, raising Rs 1,200 crore ($145 million), according to a regulatory filing sourced from the Registrar of Companies.
In addition to this, the board also issued 4,50,000 Series C Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 3,000, amounting to Rs 135 crore. Kitchens@ has raised Rs 1,200 crore ($145 million) in the fresh round, while the remaining Rs 135 crore ($16 million) is likely part of a Finnest-led $65 million Series C round announced in December last year.
The filings indicate that Finnest now holds 53.75% of the shares in Kitchens@ following this investment, making Kitchens@ a subsidiary of Finnest Holdings.
Founded in 2018, Kitchens@ offers turnkey solutions to food and beverage (F&B) brands, enabling them to expand their presence with comprehensive services, including infrastructure, technology, and operations. The startup collaborates with numerous food brands, including Domino’s, Subway, Taco Bell, Nando’s, ChicKing, and national chains such as ITC, Mainland China, and Barbeque Nation.
In early 2023, Kitchens@ acquired Swiggy’s Access Kitchens business in a share swap deal. Following the acquisition, Kitchens@ aimed to expand its reach to four cities across 52 locations and over 700 kitchens.
Kitchens@ experienced significant growth in FY23, with revenue from operations increasing by 67% to Rs 62 crore from Rs 37 crore in FY22. Despite this growth, the company reported losses of Rs 27.3 crore for the same period. The company has yet to file its annual results for FY24.
Kitchens@ competes with several other companies in the cloud kitchen sector, including Rebel Foods, Curefoods, EatClub, Biryani By Kilo, FreshMenu, Biryani Blues, Bigspoon, Dil Foods, Ghost Kitchens India, and HOI Foods.
