Finnest is a private equity company based in London that acquired a major stake in a cloud kitchen startup Kitchens@ based in Bengaluru for $145 million. Kitchens@ secured $65 million in its series C  round led by Finnest. The startup previously secured $145 million in its fresh funding round. The  company provides solutions to F&B brands to help them expand their market presence, enhance  infrastructure, operation services, meet market demand, and advance its technologies. 

The board has approved a resolution to allot 40,00,000 equity shares at an issue price of Rs 3,000 each  to raise $145 million. According to the regulatory filing, the board also passed a resolution to allot  4,50,000 series C CCPS at an issue price of Rs 3,000 to raise Rs 135 crore. The company will use these  fresh proceeds to scale up operations, enhancing its platform, working capital purposes, and market  expansion. The company claims to have clients including Domino, subway, Nando, Taco Bell, and  national chains including Barbeque Nation, and Mainland China. 

After this funding round the private equity firm Finnest owns 53.75 percent of the total share in  Kitchen@, making it the largest stakeholder of the firm. This will make the startup a subsidiary of  Finnest Holdings. According to a report by Fintrackr, the startup has a post-allotment valuation of  around 255 million USD. The company plans to expand its network in more than 52 locations across  four cities and establish over 700 kitchens.  

This investment from Finnest shows the trust of investors in the startup’s market potential and  business model. The startup announced a 67 percent increase in its revenue to Rs 62 crore in FY23.  While the losses also increased to Rs 27.3 crore in the same duration. The company competes with  other cloud kitchen companies including Curefoods, EatClub, Rebel Foods, Biryani By Kilo, Bigspoon,  Dil Foods, HOI Foods, and Biryani Blues. This acquisition will help Kitchens@ grow and incorporate  Finnest Holding’s technology to aim for market expansion. This acquisition will be beneficial for both  companies and will enable them to integrate their technologies.  

Conclusion: 

Kitchens@ is a cloud kitchen startup based in Bengaluru that offers cloud kitchen service. This startup  got acquired by a private equity firm Finnest for $145 million. The startup previously secured 145  million USD in its fresh funding round and raised $65 million in two tranches from its series C led by  Finnest Holdings. The board has approved a special resolution to allot 40,00,000 equity shares at an  issue price of Rs 3,000 each to raise $145 million. The board members also passed another resolution  to allot 4,50,000 series C CCPS at an issue price of Rs 3,000 and raise Rs 135 crore.

The company plans  to use this investment to scale up operations, enhance its platform, increase its customer base, meet  working capital needs, and market expansion. After this round, Finnest became the largest stakeholder  of kitchens@ with 53.75 percent. This startup has a post-allotment valuation of around 255 million  USD. The company plans to expand its network in more than 52 locations across four cities and  establish over 700 kitchens. This Bengaluru-based startup competes with other cloud kitchen  companies including Curefoods, Rebel Foods, Bigspoon, Biryani By Kilo, Dil Foods, HOI Foods, EatClub,  and Biryani Blues.