Ghost Kitchens India, a Mumbai-based food-tech platform specializing in cloud kitchens, has successfully raised $5 million in a Series A funding round led by GVFL Limited from Ahmedabad. The funding, a combination of equity and debt, also saw participation from NB Ventures, LetsVenture, Lead Angels, and existing investors like Yuj Ventures, Dholakia Ventures, and actor Rana Daggubati.
Founder Karan Tanna stated that the funds will be utilized to scale up business operations, expand their network of cloud kitchens, and establish more quick-service restaurant outlets.
In February 2023, Ghost Kitchens India acquired SpeakBurgers, a brand founded by chef Vicky Ratnani. The recent funding will enable the company to launch 25 offline retail stores for this brand in Western India over the next 18-24 months. Additionally, the company plans to introduce other celebrity brand partnerships.
Established in 2019, Ghost Kitchens India currently operates around 15 cloud kitchens in Mumbai and Ahmedabad. Its technology is also employed in 1,200 cloud kitchens belonging to 150 restaurant companies across 40 cities.
Tanna explained, “Restaurants and hotels encounter numerous challenges with online aggregators and struggle to boost orders and revenues. In 2022, we acquired a technology company that helps them generate additional revenue without significant investment in their cloud kitchens. We also provide ingredients to these kitchens, ensuring a consistent experience for customers.”
The company has ambitious plans for an IPO by 2029 and aims to achieve profitability within the next 12-18 months. Tanna expressed confidence in continuing to deliver exceptional performance for both existing and new partners. The company targets an annualized revenue of approximately $26 million within the next two years.
A ghost kitchen operates without a physical storefront or dine-in area, focusing solely on preparing and delivering food through online platforms like Swiggy and Zomato.
Kamal Bansal, MD of Gujarat Venture Finance Limited, highlighted the company’s impressive customer retention rates and its strategic use of technology to drive growth through aggregator platforms.
Ratnani remarked, “I joined forces with Ghost Kitchens a year ago, and their infrastructure for brand scaling has significantly benefited SpeakBurgers.”
Before the pandemic, India’s food services sector was projected to reach ₹4.95 trillion by FY21. However, due to COVID-19, the industry’s revenue plummeted to just 40% of that target, approximately ₹2 trillion, that year.
Looking ahead, the National Restaurant Association of India (NRAI) forecasts that the sector will rebound, reaching ₹6.21 trillion by FY25, with a 5% compound annual growth rate (CAGR). This growth will be driven in part by the rapidly expanding restaurant chain market, expected to grow at a rate of 20% between 2020 and 2025.
