An accelerator and a growth investment firm, Ghost Kitchens (managed by Karan Tanna) has recently acquired a majority stake in cloud kitchen companies QSR Brands India and Eathos Group for an amount that remains undisclosed.
As per the company valuations, QSR is placed at $5.5 million, while Eathos Group is valued at $2.2 million. Ghost Kitchens, with the acquisition is also expected to provide the necessary capital, infrastructure, backend, marketing, supply chain, and warehousing mentorship to the invested companies.
Ghost Kitchens also hold regional expansion plans for these two firms with multiple geographies. With the resource investment, both the companies target to expand their operations, realise the challenges around unit-level economics and scalability in the cloud kitchen business and work towards upgrading existing business.
“Partnering with Ghost Kitchens is a very strategic decision for us, as the unison is to bring more than just the capital investment but to double our point-of-sales but will also great synergies to exploit the economy of scale and cut down our costs at the unit and corporate level. Its experience of expansion across geographies will help us reach our goals faster and in a sustainable model,” Manoj Kudtarkar, Founder of QSR Brands India said.
Sabbir Ansari, Owner and CEO of Eathos Group added, “Karan is mentoring me for the last few years. Ghost Kitchens’ understanding of ‘Real India’ in respect to the region’s food business is very on-point, and that will help us grow in a financially tight model. We want to keep capital per unit as low as possible and minimise the overhead expenses at the corporate level. Our partnership with Ghost Kitchens will help us focus on operations, as we can leverage its strengths to bring the growth strategy and adequate capital.”
Talking about the concept of cloud kitchen, it is a takeaway outlet that provides no dine-in facility. They function as a production unit with a space for the preparation of food. It heavily relies on self-delivery or through various delivery aggregators.
About Ghost Kitchens
Ghost Kitchens, founded in June last year by food services business entrepreneur Karan Tanna, is an investment and incubation company for startups in the cloud kitchen segment. The startup is majorly self-funded, where it plans to have a portfolio of at least 20 delivery partner-oriented companies, and elaborate its presence in 12 cities, along with operating more or less 300 internet restaurants by the end of 2020.
