Ghost Kitchens India, a cloud kitchen startup, raises $5M in a Series A round

Ghost Kitchens India, a cloud kitchen startup, has raised $5 million in a Series A funding round led by Gujarat Venture Finance Limited.

The round, which is a mix of debt and equity, also saw participation from NB Ventures, LetsVenture, Lead Angels, and existing investors Yuj Ventures, Dholakia Ventures and actor Rana Daggubati.

Ghost Kitchens operates popular brands like Khichdi Paradise, Wakka Makka, and Bhayankar Burgers, serving customers across Mumbai, Ahmedabad, and 40 other cities in India.

What does Ghost Kitchen do?

Founded by Karan Tanna, Ghost Kitchens provides cloud kitchen brands built to drive revenue and increase kitchen profits by adding a plug-and-play food delivery concept within existing setups. 

The startup helps increase incremental sales and drive better margins with affordable, low-risk expansion opportunities. It also offers a free tech platform to monitor sales and operational metrics to organically grow orders.

Expanding beyond the cloud

The company, founded in 2019 by Karan Tanna, a seasoned hotelier and entrepreneur, has evolved from its initial model of company-operated cloud kitchens. After a temporary shutdown due to COVID-19, Ghost Kitchens relaunched in 2021 with a strategic shift towards a fulfilment partner programme.

The model licenses its brands to existing restaurants and cloud kitchens, enhancing revenue through technology and supply chain solutions.

With the new funding, Ghost Kitchens plans to open 25 quick-service restaurants with dine-in facilities, aiming for these outlets to contribute around 50% of overall revenues within 2-3 years.

Acquisitions

The startup has made notable acquisitions, including celebrity Chef Vicky Ratnani's Speak Burgers and a technology company in 2022. These moves have enabled Ghost Kitchens to develop proprietary technology for end-to-end business management, focusing on organic growth and customer experience. 

Achieving profitability

Ghost Kitchens India is on a path to profitability, with plans to achieve annualised revenue of approximately Rs 200 crore in the next two years. The startup anticipates reporting Rs 40 crore in revenues for the financial year ending March 2024, with projections to scale to Rs 60-65 crore by FY26. 

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