QSR operator Devyani International to acquire controlling stake in ‘Biryani by Kilo’

Devyani International Ltd, one of India's largest quick service restaurant operators, is preparing to acquire a majority stake in Sky Gate Hospitality, the parent company behind the popular food brand 'Biryani by Kilo.'

The acquisition, once approved, will significantly strengthen Devyani's footprint in India's fast-growing biryani and kebab delivery space.

In a regulatory filing, Devyani International, which is promoted by the Jaipuria family, said the board of directors is scheduled to meet on April 24 to consider and approve the final agreements for the deal. The board will also consider issuing equity shares on a preferential basis to fulfill the payment for acquiring a controlling stake in Sky Gate Hospitality. However, specific financial terms, including the number of shares or acquisition price, were not disclosed.

"We wish to inform you that a meeting of the Board of Directors of the Company is scheduled on Thursday, April 24, 2025 inter-alia, to consider and approve the definitive agreements and issuance of equity shares of the company on a preferential basis to discharge the consideration payable for acquisition of controlling equity stake in Sky Gate Hospitality Private Limited, operating restaurants under the brand 'Biryani by Kilo' and other brands," the company said in the filing.

Sky Gate Hospitality's presence

Sky Gate Hospitality, which began operations in 2015, runs more than 70 dine-in restaurants under the Biryani by Kilo brand across India. The company also manages cloud kitchens and several other smaller brands, offering a wide presence in the delivery-first dining model.

Devyani International's brands

Devyani International is known for operating global brands such as KFC, Pizza Hut, and Costa Coffee under franchise agreements. It is the largest franchisee for Yum Brands in India and the exclusive partner for Costa Coffee, which is owned by Coca-Cola. Additionally, DIL runs its own South Indian vegetarian restaurant chain, Vaango.

As of December 31, 2024, the company operated over 900 KFC outlets, 580 Pizza Hut locations, 190 Costa Coffee cafés, and more than 70 Vaango stores across India, Nepal, and Nigeria. The move to bring Biryani by Kilo into its fold aligns with DIL’s strategy to diversify its offerings and tap into regional Indian cuisines with growing demand.