Cloud Kitchen Startup EatClub Brands finalises $30 million Secondary Funding Round
EatClub Brands - formerly Box8 - is nearing the completion of a $30 million secondary investment round, in which existing backer Tiger Global is anticipated to expand its share, according to persons familiar with the matter.
A91 Partners, a Mumbai-based investment firm, will also join in the secondary stock buy, which will see existing backer IIFL sell a portion of its position in the company, according to the individuals.
Box8 was first backed by IIFL Seed Venture Funds, the venture capital and private equity arm of IIFL Wealth & Asset Management, in 2016. In addition, as part of a primary capital infusion in EatClub Brands, IIFL and A91 Partners will purchase new shares.
In December 2021, Tiger Global, based in New York, led a $40 million capital infusion into the company.
The ongoing secondary deal is a follow-up to the $300 million round that was completed earlier this year.
"The secondary share sale is underway, and all procedures should be completed soon... the round's size is slightly larger than anticipated, "a source close to the situation stated.
EatClub cofounder Anshul Gupta acknowledged that a secondary transaction was in the works.
"Tiger Global is doing an additional secondary tranche of over $11 million as part of our last transaction," says the company "he stated.
Gupta remained tight-lipped about the other investors on the horizon. As part of the secondary deal, angel investors were exiting. The funds will be used to open more kitchens, expand to other cities, and invest in technology by EatClub. Gupta and Amit Raj, both IIT-Bombay grads, started EatClub Brands in Mumbai in 2012.
In 2014, it changed its name from a Mexican quick-service restaurant chain to a multi-brand cloud kitchen model.
It is present in five cities, including Mumbai, Bengaluru, and Pune, and operates eight brands, including Box8 and Mojo Pizza.
According to Gupta, the company also operates 150 cloud kitchens, with earnings before interest, depreciation, tax, and amortisation (Ebitda) ranging from 20% to 30% depending on the location and age of the kitchen.
In December 2021, their yearly revenue run rate was around Rs 100 crore. The company employs roughly 150 people and has a delivery fleet of about 1,500 people.
Gupta told that roughly 55-60% of orders on New Year's Eve - when food aggregators Zomato and Swiggy saw a large jump in demand - came through its direct ordering channel.
EatClub competes with other cloud kitchen firms such as Curefoods and Rebel Foods, both of which are investing in their own direct ordering apps.
In recent months, there has been a lot of action in the cloud kitchen industry, with two back-to-back mergers since January.
Curefoods announced its merger with rival Maverix in the same month as it raised $62 million. Meanwhile, Kitchen Center and Kitchen@ joined to expand their separate cloud kitchens across India. In 2021, the sector gave birth to its first unicorn, Rebel Foods.
A91 Partners, a Mumbai-based investment firm, will also join in the secondary stock buy, which will see existing backer IIFL sell a portion of its position in the company, according to the individuals.
Box8 was first backed by IIFL Seed Venture Funds, the venture capital and private equity arm of IIFL Wealth & Asset Management, in 2016. In addition, as part of a primary capital infusion in EatClub Brands, IIFL and A91 Partners will purchase new shares.
In December 2021, Tiger Global, based in New York, led a $40 million capital infusion into the company.
The ongoing secondary deal is a follow-up to the $300 million round that was completed earlier this year.
"The secondary share sale is underway, and all procedures should be completed soon... the round's size is slightly larger than anticipated, "a source close to the situation stated.
EatClub cofounder Anshul Gupta acknowledged that a secondary transaction was in the works.
"Tiger Global is doing an additional secondary tranche of over $11 million as part of our last transaction," says the company "he stated.
Gupta remained tight-lipped about the other investors on the horizon. As part of the secondary deal, angel investors were exiting. The funds will be used to open more kitchens, expand to other cities, and invest in technology by EatClub. Gupta and Amit Raj, both IIT-Bombay grads, started EatClub Brands in Mumbai in 2012.
In 2014, it changed its name from a Mexican quick-service restaurant chain to a multi-brand cloud kitchen model.
It is present in five cities, including Mumbai, Bengaluru, and Pune, and operates eight brands, including Box8 and Mojo Pizza.
According to Gupta, the company also operates 150 cloud kitchens, with earnings before interest, depreciation, tax, and amortisation (Ebitda) ranging from 20% to 30% depending on the location and age of the kitchen.
In December 2021, their yearly revenue run rate was around Rs 100 crore. The company employs roughly 150 people and has a delivery fleet of about 1,500 people.
Gupta told that roughly 55-60% of orders on New Year's Eve - when food aggregators Zomato and Swiggy saw a large jump in demand - came through its direct ordering channel.
EatClub competes with other cloud kitchen firms such as Curefoods and Rebel Foods, both of which are investing in their own direct ordering apps.
In recent months, there has been a lot of action in the cloud kitchen industry, with two back-to-back mergers since January.
Curefoods announced its merger with rival Maverix in the same month as it raised $62 million. Meanwhile, Kitchen Center and Kitchen@ joined to expand their separate cloud kitchens across India. In 2021, the sector gave birth to its first unicorn, Rebel Foods.
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