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Incubation company for startups in cloud kitchen launched
Business

Incubation company for startups in cloud kitchen launched

Agency News

New Delhi, Oct 25 : Ghost Kitchens Pvt Ltd, India's first investment and incubation company for startups in cloud kitchen segment, will focus on a very fast-growing food delivery market and will incubate and invest in companies that focus only on home delivery.

The company launched by Karan Tanna will leverage its expertise in running scalable food and beverage retail formats across India to help good assets grow quickly across the country.

The company will provide growth capital to brands that are already performing well in-home delivery formats for their growth to multiple stores. Since the margins in-home delivery are very small, Ghost kitchens will also provide a common infrastructure, back end raw material and supply chain supports and kitchens premises along with marketing and administration centralised support to help brands optimise these costs.

Mr Tanna will be leading Ghost Kitchens Pvt. Ltd with aggressive expansion plans, in the role of Founder and CEO. While he will continue to be a shareholder in Yellow Tie hospitality, the company he founded, the Yellow Tie will recruit a full-time CEO to fill into Mr Tanna’s shoes.

Ghost Kitchens plans to have an investment portfolio of 50 brands in 3 years and 1000 internet restaurants or point of sales in 3 years. The first tranche of investment will be 3 million USD for 15 brands in the first year, according to company statement here on Friday. The company will aim at investing in diversified cuisines ranging from Indian, Chinese, desserts and milkshakes, South Indian and specialist cuisines that have an opportunity to scale up across India. The invested brands will be leveraging the existing delivery aggregators to build a pipeline for orders and for last-mile delivery.

Karan Tanna says ''Cloud kitchens is an exciting phenomenon worldwide. The Industry is growing at the highest CAGR amongst any other segment and restaurant industry. The margins are thin and we believe we can add value to the branch by helping them to scale up quickly by not only giving growth capital but also a central support system that will enable the quick growth and optimise overhead costs.''

The company will also have a special investment allocated to home chefs who want to develop their brands for home delivery and scale it up. ''We Can add value to develop a good brand around a mature product run by a passionate chef or entrepreneur,'' he added.

Ghost kitchen is India’s first incubator for scalable cloud kitchens. In a scenario where cloud kitchens are disrupting the restaurant industry, an incubator that organises their growth can be huge influencer and enabler. (UNI)