It is time for the startups under the cloud kitchen segment to brace themselves for a bunch of capital infusion as India’s maiden investment and incubation company Ghost Kitchens Pvt Ltd, has been launched by its founder Karan Tanna, reported Yourstory.
The Ghost Kitchens will target the emerging food delivery platforms and invests in companies that works on home delivery segment.
According to sources, the Ghost Kitchens will leverage its expertise such as in-house capabilities of brand building, menu engineering, warehousing, supply chain, marketing, and other ecosystem infrastructure, in running scalable food and beverage retail formats across India.
Importantly, the incubation company Ghost Kitchens has decided to invests $3 million (approx INR 22 crore) initially, in at least 15 brands.
While, currently, the Ghost Kitchens is investing in two cloud kitchen companies with 12 brands, and is available in 50 locations.
“The company will provide growth capital to brands that are already performing well in the home delivery formats for their growth to multiple stores. Since the margins in home delivery are small, Ghost Kitchens will also provide a common infrastructure, raw material, supply chain support, and kitchen premises along with marketing and administrative support, to help brands optimise these costs,” Karan Tanna, Founder, and CEO of Ghost Kitchens, said.
Tanna further added that the startup plans to have an investment portfolio of 50 brands and 1,000 internet restaurants or point-of-sale (PoS) in three years.
It is now in the process of identifying and shortlisting a few companies that are already running cloud kitchens with multiple brands, he said.
“Cloud kitchen is an exciting phenomenon worldwide. The industry is growing at the highest CAGR as compared to other segment and restaurant industry. The margins are thin and we believe we can add value to the branch by helping them to scale-up quickly, by not only giving growth capital but also a central support system that will enable quick growth and optimise overhead costs. We would be interested in brands that cater to critical mass and also has potential in Tier 2 and Tier 3 cities. A couple of delivery aggregators are present in more than 200 cities, and that’s where we want to take the potential brands,” Tanna stated.
Also read: Yellow Tie Hospitality to offer incubation for startups; extends services to Ghost Kitchens