Ghost Kitchens, a cloud kitchen startup in India, has acquired Ahmedabad-based cloud kitchen company Shy Tiger Brands, marking its foray into the state of Gujarat, The Economic Times (ET) has reported.
Shy Tiger Brands operates five multi-brand cloud kitchens in the city, with brands such as KBOB’s and The Black Chimney under its belt.
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The company boasts an annualised revenue run rate (ARR) of Rs50m ($0.6m), according to a recent statement.
The acquisition follows Ghost Kitchens’ recent funding round in February, where it secured $5m in a mix of debt and equity.
Ghost Kitchens founder and CEO Karan Tanna was quoted by ET as saying: “We saw this as an opportunity to scale these brands and expand our presence into Ahmedabad and the Gujarat market.
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“Moreover, brand affinity and customer repeat ratio give us a strong position to build up a business. Apart from plugging our brands in their existing kitchens, we could improve the unit economics and get a substantial yield from each kitchen and the entire state.”
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By GlobalDataThe funding was led by Gujarat Venture Finance, with participation from NB Ventures, LetsVenture, Lead Angels, and existing investors Yuj Ventures, Dholakia Ventures, and actor Rana Daggubati.
In the same month, ET reported that Ghost Kitchens had also acquired Speak Burgers, a gourmet cloud kitchen by television host and chef Vicky Ratnani. Ratnani has since joined Ghost Kitchens as chief culinary officer and co-founder.
In 2022, Ghost Kitchens enhanced its technological capabilities by acquiring technology company WTF. This acquisition enabled the creation of proprietary technology for the firm.
Currently, Ghost Kitchens operates more than 15 company-owned and operated cloud kitchens in Mumbai and Ahmedabad, as well as 1,200 internet restaurants across 40 cities in India.
Established in 2019, it initially focused on company-operated cloud kitchens for delivery and takeout but had to shut down due to the downturn from the Covid-19 pandemic.
In 2021, the company relaunched with a new fulfilment partner programme, licensing its brands to existing restaurants, cloud kitchens, and hotel kitchens.
It now operates 15 scaled-up and three to four pilot brands and plans to transition from its fulfilment partner programme model to opening quick-service restaurants with dine-in facilities in high-street areas, aiming to open 25 such establishments.
Ghost Kitchens’ founder, Tanna, has shared with ET that the company is on track to report Rs400m in revenues in FY 2024, a significant increase from Rs250m a year ago. He anticipates the business scaling to Rs600-650m by FY 2026.
