Devyani International, the operator of KFC and Pizza Hut in India, has acquired an 80.72 per cent stake in Sky Gate Hospitality, the parent company of Biryani by Kilo.
The total value of the said transaction is Rs 431.31 crores.
About Devyani International
Established in 1991 by billionaire Ravi Jaipuria, Devyani International is among India’s largest franchise operators, managing prominent global fast-food and beverage brands including KFC, Pizza Hut, Costa Coffee, and Vaango. It currently operates over 2,030 outlets across approximately 280 cities in India, Nepal, Thailand, and Nigeria.
Sky Gate Hospitality, founded in 2015 by Kaushik Roy and Vishal Jindal, has expanded to around 70 outlets across 29 cities throughout India.
About Sky Gate Hospitality
Sky Gate Hospitality currently manages around 100 outlets across 40 cities under three brands: Biryani by Kilo, Goila Butter Chicken, and The Bhojan, with Biryani by Kilo being its flagship brand.
Initially known for its unique Handi Biryani, Biryani by Kilo expanded its menu offerings to include items like kebabs, roasted chicken, and desserts.
According to an exchange filing, the equity valuation of Sky Gate Hospitality, excluding its Krazy Kebab Co. division and investment in Peanutbutter, stands at ₹519 crore. Devyani International’s acquisition involves purchasing an 80.72% stake on a fully diluted basis for approximately ₹419.31 crore.
"Sky Gate's mastery over flavors and their distinctive biryani cooking techniques have allowed them to consistently deliver high-quality, delicious dishes, establishing them as a standout leader in the industry," said Ravi Jaipuria in a statement.
Kaushik Roy and Vishal Jindal stated that their partnership with Devyani International represents a significant step toward nationwide expansion.
"We firmly believe our brands have found an ideal partner in Devyani International to support Sky Gate's future growth and expansion. Together, we'll leverage our combined expertise to enrich customer offerings and significantly improve the dining and delivery experience," the duo said in a statement.
