House of Biryan secures US$2M funding drive 

INDIA- Restaurant chain House of Biryan has raised US$2 million in investment from Al Siraj Holdings, Angel Star ventures, and other high-net-worth individuals (HNIS) from the US. 

The chain has raised a total of US$3 million in all its funding rounds. 

The company announced it intends to use the funds to further deepen its product offering and open new locations in an aggressive expansion effort. The restaurant chain aims to deepen offerings in kebabs and biryani, together with Mughlai and other Indian cuisines as opposed to expanding into different brands.  

House of Biryan also revealed intentions to utilize part of the funding to invest in quick commerce, aligning itself with customer sentiments and market behavior.  

According to market analytics firm Mordor Intelligence, the Indian quick service restaurant market size is estimated to be worth US$25.46 billion in 2024 and is projected to grow at a combined annual growth rate (CAGR) of 8.74% between 2024 and 2029, crossing the US$38.71 billion valuation mark by 2029. 

In January 2024, the restaurant chain announced plans to open 40 new locations over a period of 18 months, albeit dependent on funds raised. By the time of the announcement, House of Biryani has raised US$1 million and was seeking an additional US$2 million by Q2 2024. 

The latest funding drive is expected to facilitate this aggressive expansion plan. 

Despite currently operating at a 2% operation loss before interest and taxation, the restaurant chain remains optimistic of breaking even by September 2024. The company also predicts achieving single-digit profitability by the end of the year. 

Investors are optimistic over the new funding drive because of the company’s progress in the past year. The company added 80,000 new customers in 2023, which resulted in Rs 28 lakh (US$33,520) monthly income per store.  

Mohit Goyal, an early investor, expressed optimism in the chain by saying, “The notion with Cloud kitchen QSR bets has been that they are difficult to profit from, but what drew me to HOB was their per-kitchen stats.” 

According to an official press release, the company aims to serve 100,000 orders monthly and cross the Rs 100 crore (US$12 million) annual revenue mark by the end of the year. 

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