Biryani Blues Nets $5 Mn From Yugadi Capital

Biryani chain Biryani Blues has raised $5 Mn in a Pre-Series C funding round led by Carpediem Capital’s new fund Yugadi Capital.

The company plans to deploy the fresh capital to open over 100 new outlets across north India over the next three years, strengthen hiring across operational, delivery and corporate roles and upgrade its logistics operations.

Founded in 2013 by Aparna and Raymond Andrews, Biryani Blues operates under Thea Kitchen Pvt. Ltd. and currently runs 68 outlets across north India and Bengaluru. It serves both dine-in and delivery customers through an omnichannel model and handles over two lakh monthly orders. The company’s current annual revenue run rate (ARR) is around INR 100 Cr.

“Post Covid, many of the offline stores have taken some time to get back into breaking even and making the money they used to make earlier. So we spent the last 15 months, 18 months to fine tune all of these, make more efficiencies in gross margin, reduce the operational fixed costs, logistics costs and all. So this year, FY25, we have broken even,” Raymond Andrews told Inc42.

The biryani chain plans to focus on the Delhi NCR and north India market before expanding to other regions. “We intend to keep the focus in NCR and north India for now. Because every store we open here turns profitable within three months. So we want to keep the profit because people know the brand. It’s the market leader by far here in the north,” Andrews added.

The company reported same-store sales growth of 13.5% in the past year, outperforming the QSR industry average of -3% to 3%.

“We are poised to accelerate our expansion by opening over a 100 new brand stores over the next three years, in popular High Street markets and malls across north India,” Andrews said.

Earlier, Biryani Blues raised $5 Mn in Series B funding from Rebel Foods in FY 2022, which backed the brand’s value-for-money positioning in the mass market segment. It had previously secured $2 Mn in Series A funding from Carpediem Capital Partners Fund I between FY 2016 and FY 2017.

The funding comes at a time when the biryani segment is seeing increased investment and competition. Competitor from Dubai-based investment firm Pulsar Capital in November 2024, at a valuation of about $100 Mn.

The biryani market in India remains largely fragmented, with major players including Biryani By Kilo, Rebel Foods’ Behrouz Biryani, Bengaluru-based Potful, and Biryani Blues competing for market share.

Bengaluru-based Potful, which offers regional biryani varieties, . The company aims to reach INR 100 Cr in revenues by the next fiscal.

The investments reflect growing interest in the food delivery space in India, with cloud kitchen startup as an investor and brand ambassador for its flagship brand EatFit. The company is reportedly preparing for an IPO soon, looking to raise around $300-400 Mn.

Other recent investments in the food space include in January 2025, bubble tea brand in January 2025, and restaurant chain in January 2025.

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