Premium Dining Startup Big Fish Ventures Raises Funds by Ahemad Shaikh( 13:26, 10-Mar-16)
Big Fish Ventures, a New Delhi-based startup that runs premium dining lounges such as Vault Cafe and GaramDharam, has raised Rs 75 crore in its second round of funding from angel investors - including high net worth individuals - and founder Umang Tewari.
Founded in 2015, Big Fish Ventures owns and operates food and beverage outlets in casual dining, cafes and lounges under brands such as Vault Cafe, The Junkyard Cafe, Public Connection, GaramDharam, Raas and Bandstand in the national capital. The startup has eight operational outlets and plans to increase its portfolio to 20 by the end of 2016.
"The funds will be invested in expanding our existing brands, developing new concept-based brands and beefing up our technology in terms of presence on the mobile and online space," Tewari told ET. Last month, the startup launched a mobile app for table reservations at its restaurants.
In 2016, Big Fish Ventures will expand its presence by opening outposts in Mumbai and its first overseas outlet in Dubai, apart from exploring opportunities in Punjab, Chandigarh, Jalandhar, Bengaluru, Hyderabad and Pune. The company is looking at opportunities in Canada, London and China.
The startup is working on developing new brands including courtyard concept Garden and a cafe called 'OMG - Oh My God!' Big Fish Ventures owns the concept, brand holding and runs the operations and development of its brands.
There were 15 investment deals in the restaurant sector in India in 2015. Industry experts said restaurant growth story is promising and it is still largely untapped.
"There are definitely takers for good food and beverage chains which meet criteria such as quality of brand, quality of promoters, scalability and profitability or at least strong visibility of profitability," said Siddharth Bafna, head of corporate finance and transaction services practice at Lodha & Co.
While there are takers for good quality brands, Bafna said, investors are cautious because in the last couple of years, growth has slowed for many F&B players and the sector faces challenges in terms of weak consumer sentiment, inflation, increase in minimum wages and import restrictions. "Moreover, not all of the earlier investments in the sector have seen great success," he said.
Even so, sentiment remains upbeat given that as disposable income levels rise, consumers will spend more money on eating out.
Recent deals include the F&B arm of Everstone Capital picking up a 50 per cent stake in restaurateur Zorawar Kalra -owned Massive Restaurants; India Value Fund Advisors acquiring controlling stake in chef Rahul Akerkar-founded deGustibus Hospitality for close to Rs 190 crore; Goldman Sachs investing Rs 64 crore in pan-Asian restaurant chain Mamagoto, and investors led by Samara Capital acquiring the south and west India franchise operations of Pizza Hut from Dubai-based Dodsal group for close to Rs 200 crore.
Source - Economic TimesPowered by Capital Market - Live News