Foodlink, a player Indian luxury catering and banqueting space, has raised 8 million in its Series B funding round led by Arpit Khandelwal, Managing Partner, Plutus Wealth Management LLP.
Founded in 2003 by Sanjay Vazirani, Foodlink F&B Holdings India Pvt. Ltd. is a luxury banquets and catering brand that also owns and operates casual dining restaurant brands such as India Bistro, China Bistro, Glocal Junction & Art of Dum.
The Mumbai-based company will use the funds raised to expand its flagship business of luxury catering across newer geographies in India and overseas, to take its luxury banquet brand called JADE Luxury Banquets to more cities in India, and to scale their casual dining restaurant business through its brands, India Bistro, China Bistro & Art of Dum.
The company has so far raised $23 million including the current round. It received $15 million as part of its Series A round from OAKS Asset Management in 2017.
The company has set up state of the art infrastructure for providing banqueting and catering services in Mumbai, Ahmedabad, Chandigarh, and UAE with plans to expand in Delhi, Jaipur and other prominent cities in India, by partnering with real estate owners and partners who want the Foodlink brand to manage and run their banqueting facilities. They also provide consultancy services and turnkey solutions to luxury hotels for grand events, according to a press release.
Foodlink expansion
While a lot of players have shut down operations during the pandemic, Foodlink has strategically used this time to fortify its presence in the UAE during FY21. The company has started eight new restaurant / cloud kitchen units in Dubai & Sharjah in 2021. Foodlink has also entered into alliances with Dubai World Trade Centre and various other luxury hotels in the UAE. By 2025, Foodlink aims to be the market leader in India and Dubai across banqueting, catering and restaurant businesses.
Foodlink has invested heavily in world class infrastructure with over 50,000 sq.ft of kitchen space and over 35,000 sq.ft of warehouse space.
To leverage technology to support growth
Sanjay Vazirani, Founder, Foodlink said, “Our current revenue run rate for FY22 is Rs 100 crore and we expect it to be around Rs 300 crore by the end of FY23-24. Foodlink plans to leverage technology in a big way to support its growth across geographies. We plan to take our management of sales pipeline, quality audits, infrastructure management and resource allocation to the next level of maturity post this round of funding.”
Arpit Khandelwal, Managing Partner at Plutus Wealth Management said, “Foodlink is an exceptional business that offers a unique way to invest in the uber-luxury Indian wedding market. Weddings in India are a recession-proof business and the increased focus on high quality, hygienic food and formal organised vendors will strengthen Foodlink immensely.”
Food services market poised to reach $85 bn by 2024
The Indian food services market was about $60 billion in FY19 and is expected to reach $85 billion by FY24. India witnesses 10-12 million wedding ceremonies (on average) a year which drives the wedding market (around US$ 42 bn). Of this, banqueting and catering constitute 65 percent of total spends (nearly $26 billion). In addition, the MICE (Meetings, Incentives, Conferences & Exhibitions) market adds another US$ 3.5 bn in size.
The Indian restaurant industry was also around $60 billion in size in FY20. 90 percent of these restaurants cater to casual diners in the mass market. In addition, nearly 5,000 cloud kitchens ($ 400 million cumulative revenue) are now serving customers through the thriving food-tech platforms and delivery solutions. Foodlink operates entirely in the casual dining and cloud kitchen space in India and UAE.
