BOX8 parent EatClub Brands raises $40 million from Tiger Global

The company has been valued at $340 million following the funding round, sources familiar with the deal said.

Mumbai-based EatClub Brands operates eight brands, including BOX8 and MOJO Pizza, and is present in five cities including Mumbai, Bengaluru and Pune. It operates 150 kitchens.

The company will use the funds to build its technology stack and expand to 500 kitchens in the top 15 cities over the next two years.

The company, founded in 2012 by Amit Raj and Anshul Gupta, pivoted from a Mexican quick-service restaurant chain to its current model in 2014.

As with other companies in the space, Box8 will also invest part of the new funds in acquiring other successful brands, a model being followed by startups like Curefoods.

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The cloud kitchen sector and delivery-only brands have got a boost on the back of the Covid-19 pandemic, as dine-in facilities suffered.

Food delivery brand Biryani By Kilo (BBK) recently
raised $35 million in a funding round led by Falcon Edge venture capital arm Alpha Wave Ventures.

The sector also birthed its first unicorn –
Rebel Foods – earlier this year.

“The whole ecosystem has really grown to what it is over the last five-odd years. As a country, India is still brand starved. To cater to all of this demand, the country will surely need a lot more brands,” Gupta told ET.

The company will launch more brands in the coming years, he added.

To scale up more brands, food delivery app Zomato launched its Wings programme last week, connecting cloud kitchens and brands with potential investors.

EatClub Brands’ annual revenue run rate is close to Rs 100 crore, Gupta said. It had earlier raised $25 million from investors such as Mayfield India.

The startup has close to 150 employees and operates its own delivery fleet of about 1,500 riders.

“EatClub Brands is re-imagining how kitchens can operate through its innovative tech-first, full-stack cloud kitchen model,” said Griffin Schroeder, partner, Tiger Global. “We are impressed with the company’s ability to achieve scale and customer loyalty, first with BOX8 and then with MOJO Pizza, while achieving impressive unit economics.”