Devyani International, the operator of KFC, Pizza Hut, and Costa Coffee is planning to acquire Biryani By Kilo. In a board meeting on April 20, the QSR chain operator said it is considering acquiring a majority stake in Sky Gate Hospitality, the operator of BBK.
In a stock exchange filing, Devyani International said it will consider and approve the definitive agreements and issuance of equity shares of the Company on a preferential basis to discharge the consideration payable for the acquisition of a controlling equity stake in Sky Gate Hospitality.
Biryani by Kilo, founded in 2015 by Kaushik Roy and Vishal Jindal, delivers dum-cooked handi biryanis across the country. It has a presence in more than 70 dine-in outlets across 29 plus cities – Delhi NCR, Mumbai, Pune, Lucknow, Kolkata, Punjab, Jaipur, Bhubaneswar, Patna, Ranchi, Guwahati, Jamshedpur, Goa and Bengaluru.
According to a report by Entrackr, Biryani By Kilo’s revenue from operations witnessed a 23% growth to Rs 268 crore in FY24 compared to Rs 218 crore in FY23.
It reduced its losses by 29.7% to Rs 71 crore in FY 2024 versus Rs 101 crore in the previous fiscal year.
BKB’s products such as biryani, kebabs, korma, curries, etc, contributed 94.76% of the company’s revenue, reaching Rs 254 crore in FY 24. The remaining income was generated from delivery services which stood at Rs 14 crore in FY24.
The company slashed advertising expenses by 15.2% in the same period.
Meanwhile, Devyani International reported a consolidated net loss of Rs 7.65 crore due to higher expenses and tax outgo. The company’s consolidated revenue from operation stood at Rs 1,294.4 crore in Q3 FY25 compared to Rs 843.13 crore in the corresponding quarter last fiscal.