The aroma of success is getting stronger for Gurugram-based Quick Service Restaurant (QSR) chain Biryani Blues. The popular biryani brand has recently announced a significant $5 million (approximately ₹42 crore) pre-Series C funding round, spearheaded by Yugadi Capital, the freshly launched fund from private equity firm Carpediem Capital. This latest financial infusion, which values Biryani Blues at a post-money valuation of ₹250 crore (around $30 million), marks an impressive 51% jump from its valuation after a 2021 funding round led by Rebel Foods. With this recent capital injection, Biryani Blues has raised $15 million since its inception.
Ambitious Plans for Expansion and Growth
Fuelled by this new funding, Biryani Blues has set its sights on aggressive expansion. The company, co-founded in 2013 by Raymond Andrews and Aparna Andrews, intends to utilize the funds to open a substantial 100 new outlets. This strategic move aims to significantly bolster its market presence. Beyond physical expansion, the investment will also be directed towards strengthening the company’s workforce and upgrading its logistics and operational capabilities. These enhancements are crucial for supporting the planned growth and ensuring a consistent and high-quality customer experience across all its locations.
Raymond Andrews, in a statement, outlined the company’s ambitious timeline, stating, “Our focus is to open around 50 stores over the next two years, and by the third year, we aim to have about 100 new stores.” He further elaborated on the format of these upcoming outlets, mentioning that the majority will be Express-format stores. These smaller, delivery-centric outlets will strategically be located on high streets and within malls, catering to the growing demand for convenient and accessible biryani.
Biryani Blues Strengthening Market Presence Across Formats
Biryani Blues currently boasts a presence across 68 locations spanning North India and Bengaluru. Their multi-format strategy includes the aforementioned Express stores, efficient cloud kitchens catering to the online delivery boom, and strategically placed dine-in outlets in high-footfall areas like malls, airports, and railway stations.
The brand effectively leverages an omnichannel model, seamlessly serving both dine-in customers and the ever-growing delivery market. Impressively, Biryani Blues processes over two lakh orders every month, demonstrating its strong consumer appeal and operational efficiency. A significant 70% of its revenue is generated through popular aggregator platforms like Zomato, Swiggy, and Magicpin, while the remaining 30% comes from its own direct channels, highlighting a balanced and resilient revenue stream.
Biryani Blues Demonstrating Strong Financial Health
Biryani Blues has showcased a commendable financial performance, achieving EBITDA profitability in FY25. This positive development is attributed to a nearly 5% improvement in gross margins, driven by strategic initiatives such as more efficient procurement processes, tighter inventory management, and overall operational streamlining. The company concluded FY25 with a revenue of approximately ₹85 crore, a notable increase from ₹76 crore in FY24. Looking ahead, Biryani Blues has set an ambitious revenue target of ₹102 crore for FY26, with its current annual revenue run rate already hovering around ₹100 crore.
Focused Expansion in North India
For the next two to three years, Biryani Blues intends to maintain a strong focus on expanding its footprint within North India. Notably, nearly two-thirds of its upcoming 100 outlets are slated to be launched in the Delhi-NCR region. Raymond Andrews expressed confidence in this strategy, stating, “Every store we open here becomes profitable or breaks even within the first three months.” This localized focus allows for efficient resource allocation and leverages the brand’s existing recognition and supply chain network in the region.
Arvind Nair, chairman of Carpediem Capital, echoed this optimism, stating, “We reinforce our confidence in the management’s ability to scale up its decade-long success. We remain committed to supporting Biryani Blues and its strong market potential.” This vote of confidence from a key investor further underscores the promising future for Biryani Blues as it embarks on its next phase of growth.
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