Renowned investor Ashish Kacholia has acquired a 17.2% stake in the Indian burger chain Jumboking for an undisclosed sum, making him the company’s second-largest shareholder. This investment was made through a secondary market transaction following Triton Fund’s exit from the firm, which had initially invested in 2018.
Industry experts estimate the transaction to be in the range of INR 70 crore to INR 80 crore, valuing the quick-service restaurant chain at approximately INR 400-500 crore. Jumboking reported sales of INR 110 crore in the last fiscal year, operating 170 stores across Mumbai, Delhi, Hyderabad, and Pune. It ranks as India’s third-largest burger chain, following McDonald’s and Burger King.
Dheeraj Gupta, the founder of Jumboking, stated, “Globally, franchising has proven to be the most effective method for scaling a business. While it’s a challenging model to master, once achieved, it can unlock exponential growth. Likewise, although burgers are a Western concept, Jumboking has the advantage of catering to the Indian palate more effectively.”
Founded in 2001, initially selling vada pav, a popular street food in Maharashtra, the company shifted its focus to burgers in 2017 with the goal of expanding to 1,000 stores by 2030.
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Kacholia, well-known for his knack for spotting multibagger stocks, holds shares valued at INR 3,000 crore in listed companies. He invests through his firm, Lucky Securities, and has investments in more than 60 mid-sized companies.
His most significant investment is in Shaily Engineering, currently valued at INR 240 crore, followed by PCBL at INR 198 crore, Safari Industries at INR 183 crore, and Garware Hi-Tech Films at INR 173 crore. He holds a 12.5% stake in Beta Drugs, which represents his largest percentage holding in any listed company.
“Jumboking embodies top-notch execution and outstanding customer focus. I am thrilled to be part of India’s most promising QSR journey,” Kacholia commented.
According to Wazir Advisors, the organized foodservice market was valued at $27.1 billion in 2023, and the chained category is projected to grow at a CAGR of 12% from 2020 to 2026. This growth is driven by increased penetration and expansion in non-metro cities.
“QSR continues to be the fastest-growing category in the organized segment, with a projected robust growth of 18% from 2023 to 2026. This growth is fueled by the Indian population’s increasing urbanization and adoption of modern lifestyles. The QSR format has significant growth potential, as its penetration in India remains relatively low compared to developed economies,” stated Pakhi Saxena, Head of Retail and Consumer Products at Wazir Advisors.
Jumboking, an asset-light company that is 100% franchised, has experienced a seven-fold increase in sales since its repositioning in 2017. This growth is credited to its entrepreneurial franchising model, which prioritizes profitability over mere sales. The company aims to double its turnover in the next two years, expand its presence in Delhi and Hyderabad, and enter the Bangalore market this year.
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