CX Partners controlled biryani focussed CDR brand Dindigul Thalappakatti (“DT”) has raised a fresh round of funding which currently values the brand at Rs 860 crore.
The funding was led by Tree Line Investment Management along with other reputed private & public individual investors. The family office of Indian conglomerate ‘Havells Group’ is also a part of the investor cohort.
The Dindigul Thalappakatti Restaurant is a biryani focussed casual dining restaurant chain whose first outlet was opened in 1957 at Dindigul. The restaurant has 87 outlets and is present across India, USA, the UAE, Singapore, Malaysia and Sri Lanka. In India, the restaurant has 79 outlets that operate in Tamil Nadu, Karnataka, Kerala and Pondicherry.
The second round of investment will enable Dindigul Thalappakatti to fast track its growth plan across focus markets - Kerala, Andhra, Telangana, Karnataka, Tamil Nadu and Sri Lanka. “Over the course of the next one year, Dindigul Thalappakatti plans to set up 25-30 restaurants and cloud kitchens. The brand currently operates over 85 restaurants and cloud kitchens globally,” said Ashutosh Bihani, CEO, Dindigul Thalappakatti.
Despite going through unprecedented events of the Covid pandemic over the last 18 months, Dindigul Thalappaktti was quick to achieve 100% EBITDA recovery and remains one of the few F&B brands, which were profitable during FY 2020-21.
Desai Diwanji acted as a legal counsel for the company and existing shareholders. Sahil Jain, existing shareholder was the advisor to the transaction. The brand was previously valued at Rs 450 crore after a consortium led by private equity firm CX Partners picked up a majority stake in Dindigul Thalappakatti for Rs 235 crore. The deal in October 2019 was one of the largest investments in a local restaurant chain brand in India.
Bihani said that Dindigul Thalappakatti has always commanded strong loyalty across south India and more recently in select international markets. “We plan to retain our leadership in the fragmented and commoditised biryani market through faster yet best in class profitable growth.”
Himself being a private equity investor before onboarding as CEO, Bihani attributes the differentiation of the brand to its unique product offering and value proposition, customer and employee centricity and highly profitable model with restaurant paybacks ranging under 18 months.
Zaheer Sitabkhan, founder of Tree Line Investment Management, said, “We are pleased to invest and partner with Dindigul Thalappakatti as they bring this established and delicious cuisine across southern India and several overseas markets. DT has identified meals people love and at a price point offering fantastic value. We are impressed with what management at DT have achieved to prepare the business to grow and scale across the south and are excited to be part of their journey.”