Denyani International, which operates major global brands such as KFC, Pizza Hut, and Costa Coffee in India, has announced plans to acquire a majority stake in Biryani By Kilo (BBK). During a board meeting on April 20, the quick-service restaurant (QSR) operator revealed its intentions to acquire a controlling stake in Sky Gate Hospitality, the company behind BBK.
In a filing to the stock exchange, Devyani International shared that it would consider and approve definitive agreements and the issuance of equity shares on a preferential basis to fulfill the payment for acquiring the controlling stake in Sky Gate Hospitality.
Biryani By Kilo’s Growth and Performance
Founded in 2015 by Kaushik Roy and Vishal Jindal, Biryani By Kilo specializes in delivering dum-cooked handi biryanis and other traditional dishes. The brand has expanded its presence across 70-plus dine-in outlets in 29 cities, including major hubs like Delhi NCR, Mumbai, Pune, Kolkata, and Bengaluru.
BBK has experienced significant growth in recent years. Its revenue from operations increased by 23%, reaching Rs 268 crore in FY24, up from Rs 218 crore in FY23. The company also made strides in reducing its losses by nearly 30%, with losses narrowing to Rs 71 crore in FY24 from Rs 101 crore the previous year.
The majority of BBK’s revenue—94.76%—comes from its food products, including biryani, kebabs, korma, and curries, amounting to Rs 254 crore in FY24. The remainder comes from delivery services, which contributed Rs 14 crore during the same period. Interestingly, BBK also reduced its advertising expenses by 15.2%, optimizing its marketing budget while still maintaining strong performance.
Dibyani International’s Financials
While Devyani International continues to expand its reach in the QSR space, it reported a consolidated net loss of Rs 7.65 crore for the quarter due to increased expenses and tax liabilities. However, the company saw substantial revenue growth, with a reported consolidated revenue from operations of Rs 1,294.4 crore in Q3 FY25, a notable increase compared to Rs 843.13 crore in the same period of the previous fiscal year.
This acquisition, if finalized, could help Devyani International strengthen its position in the growing Indian food delivery and dine-in market, especially in the popular and competitive biryani segment.
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