India’s quick-service restaurant industry is witnessing a burst of deal activity as investor interest intensifies around rapidly scaling brands and aggressive expansion plans across categories. Multiple investment negotiations are currently underway, according to industry executives, bankers and private equity leaders tracking the market.
Kolkata-based Wow Momo, backed by Tiger Global, is in talks to raise between 1,200 crore and 1,300 crore from ChrysCapital, L Catterton India and several growth funds. The funding will support expansion in India and international markets, including Sri Lanka and the UAE. The company operates more than 800 stores and aims to touch 1,000 outlets within the next year. The round may also include secondary share sales by early investors.
Meanwhile, Everstone Capital, which controls the Subway master franchise in India, is negotiating a 200 crore to 250 crore investment with Playbook Partners as the chain strengthens its physical footprint.
Dessert and snack players are also drawing attention. Mad Over Donuts is in advanced discussions with Invus Opportunities for 60 crore to 70 crore, while The Belgian Waffle is seeking capital from Arpwood Partners in a deal that may value the brand at as much as 1,300 crore for a stake of up to 45 percent.
Analysts say that while valuations remain a sticking point in several conversations, long-term demand fundamentals are compelling. Brokerage firm Bernstein values India’s food services market at nearly 6 lakh crore in FY25, expected to reach 7.76 lakh crore by FY28, driven by delivery platforms, rising urban consumption and increased eating out.
Large operators are also sharpening their portfolios. Devyani International, the franchise partner for KFC, Pizza Hut and Costa Coffee, is exploring a controlling stake in a domestic dessert chain after acquiring Biryani By Kilo for 420 crore earlier this year. Curefoods, headquartered in Bengaluru, is preparing for an 800 crore initial public offering with regulatory approval already secured.
Industry reports predict stronger dine-out frequency in the second half of FY25 despite earlier disruptions caused by unseasonal rains and festival-related slowdowns.
