The Rs 419.6 crore deal marks a major leap in Devyani’s ‘House of Brands’ strategy, boosting its Indian cuisine offerings with over 100 outlets from Sky Gate Hospitality
Devyani International (DIL), one of India’s largest and fastest-growing Quick Service Restaurant (QSR) operators, has announced the acquisition of an 80.72 per cent stake in Sky Gate Hospitality Private Limited, the parent company of prominent food brands Biryani By Kilo, Goila Butter Chicken, and The Bhojan.
The acquisition, approved at the board meeting held on 24 April 2025, positions Sky Gate as a subsidiary of DIL and significantly bolsters the company’s portfolio in the Indian cuisine segment. The transaction, valued at approximately Rs 419.6 crore, will be partially funded through a preferential allotment of equity shares totalling Rs 419.31 crore and the remainder via cash.
A Strategic Move in the House of Brands Approach
“This acquisition enriches our portfolio with the addition of India’s favourite food category—biryani,” said Ravi Jaipuria, Non-Executive Chairman, Devyani International Ltd. “While our portfolio boasts a diverse array of national and international brands, we identified a need to add traditional and authentic flavours of much-loved Indian food to our portfolio. Our partnership with Sky Gate addresses this, bringing their exceptional brands into our fold.”
Sky Gate, co-founded by Kaushik Roy and Vishal Jindal in 2015, pioneered the handi biryani concept in India and expanded across 100+ outlets in over 40 cities. The company reported a consolidated turnover of Rs 277 crore in FY2024–25, with an estimated equity value of Rs 519 crore (excluding businesses to be carved out). The acquisition does not include the Krazy Kebab Co. and investment in Peanutbutter (owning brand Get-A-Way), which are to be divested within nine months.
Commenting on the development, Roy and Jindal said, “We are delighted to partner with a seasoned industry leader. We are confident that our brands have found the right home for future growth and expansion of the Sky Gate portfolio. Together, we aim to combine our knowledge and experience to enhance customer offerings and elevate the overall dining and delivery experience.”
Deal Highlights
Devyani International has announced the acquisition of up to 80.72 per cent equity stake in Sky Gate Hospitality on a fully diluted basis, with the total transaction valued at approximately Rs 419.6 crore. As part of the payment structure, Devyani will issue 2.37 crore equity shares at Rs 176.78 each, amounting to Rs 419.31 crore, through a preferential allotment, while the remaining consideration will be settled in cash. For the financial year 2024–25, Sky Gate reported a turnover of Rs 277 crore, excluding contributions from its divested entities. To seek shareholder approval for the preferential issue, an Extraordinary General Meeting (EGM) has been scheduled for 17 May 2025.
Expanding a Robust Portfolio
This acquisition takes DIL’s House of Brands count to 10, including global names like KFC, Pizza Hut, and Costa Coffee, as well as home-grown concepts like Vaango, Sanook Kitchen, New York Fries, and Tealive. With a presence in over 280 cities and 2,000+ stores across India, Nepal, Nigeria, and Thailand, DIL continues to consolidate its leadership in both international and Indian food categories.
The transaction not only strengthens Devyani’s position in the domestic QSR market but also reinforces its commitment to offering diverse, high-quality culinary experiences tailored to Indian tastes.
