Hyderabad: Paradise Biryani, the iconic Hyderabad-based restaurant chain, is in the process of raising approximately Rs 100 crore to fund an aggressive pan-India expansion, with plans to nearly triple its current outlet count to around 160 over the next three years, according to financial intelligence platform Whalesbook.
The fundraise is being led by Samara Capital, the private equity firm that now wholly owns Paradise Food Court, the entity that operates the brand. Samara first acquired a 35 per cent stake in Paradise in 2014 for Rs 70 crore before buying out the remaining 65 per cent in 2022 for Rs 400 crore, giving it full ownership of the 70-year-old brand.
Founded in 1953 in Hyderabad’s Old City, Paradise currently operates 57 outlets across Hyderabad, Bengaluru, Chennai, Vijayawada, Visakhapatnam and Gurugram, and reported annual revenues of approximately Rs 300 crore.
The proposed capital raise will be used to fund entry into several new markets, including Pune, Kolkata, New Delhi, Guntur and Warangal, taking the chain’s footprint from its current 57 locations to roughly 160.
A series of interventions on the back end, including standardisation, automation and supply chain improvements, have positioned the brand for rapid scale-up, according to the company’s earlier communications.
The expansion comes as India’s organised food services sector continues to attract significant investor interest. The Indian food service industry is being fuelled by rising incomes, widespread internet use and consumer preference for established chains, and biryani as a category has consistently ranked as the most ordered item on food delivery aggregators.
For the expansion to succeed, Paradise will need to manage rising costs and fierce competition from both established brands and new cloud kitchens, while replicating its success in new and varied markets.
Samara Capital has a track record of successful exits in the food services space, with its other restaurant investment, Sapphire Foods, completing a successful IPO in November 2021.
