Operating virtual food brands
Founded in 2022 by Arpita Aditi, a biotech engineer from MIT with experience in companies like Himalayan Drugs, Reliance Capital, and Swiggy, Dil Foods operates eight virtual food brands.
These brands, including Dil Punjabi, Aahar, The Chaat Cult, House of Andhra, Bihari Bowl, Bhole ke Chole, and Khichdi Bar, offer a diverse range of regional Indian flavors.
The Shark Tank India pitch
In an episode of Shark Tank India Season 3, aired on 26 January 2024, Arpita presented Dil Foods' business model and sought an investment of Rs 50 lakhs for a 0.5 percent equity stake.
The Sharks, impressed by the innovative model and Arpita's entrepreneurial spirit, engaged in a bidding war. The final deal was struck at Rs 2 crore for 2.67% equity, valuing the company at Rs 75 crore.
Who are the investors?
The deal was clinched with four Sharks: Radhika Gupta, MD & CEO at Edelweiss Mutual Fund; Vineeta Singh, CEO and co-founder of Sugar Cosmetics; Peyush Bansal, CEO and co-founder of Lenskart; and Ritesh Agarwal, CEO of OYO Rooms. Each Shark initially offered varying amounts, but they eventually joined forces to make the collective offer that Arpita accepted.
Dil Foods' business model
Dil Foods operates as a virtual kitchen, partnering with over 65 local restaurants in Bangalore and Hyderabad.
The business model, under the brand name Dil Brands, focuses on creating virtual brands and managing operations for daily meals, aiming to optimize the food business structure.
Arpita in a show said the vision for Dil Foods is to establish a sustainable and profitable restaurant ecosystem nationwide, focusing on Indian state food dishes.
Arpita said Dil Foods has partnered with 111 food outlets and has generated a revenue of Rs 6 crore for their restaurant partners. In FY 22-23, The startup made Rs 8 crore in revenue, with a projected sales of Rs 30 crore and a profit of Rs 2.2 crore for FY 23-24.
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