Founders & their story

Raghav Jaggi

Amit Bagga

As a way to pay respect to the pioneering spirit of his late grandpa, Shri Kundan Lal Jaggi (the inventor of Butter chicken), Raghav became the  was the driving force behind the concept that eventually resulted in the planting of the first seed of Daryaganj.

Amit, on the other hand, is a childhood friend of Raghav & has a track record of successfully delivering fine dining to patrons since his foray into the restaurant industry a decade ago. He is hands-on-restaurateur who pays attention to every detail in his restaurants to make sure that a customer’s’ five senses are satisfied and that they have a memorable experience. He used the same principles to come up with the idea for the Daryaganj restaurant.

 

About the company:

Daryaganj Restaurant was launched in 2019 & is located in the heart of Delhi, India. It has preserved its heritage through preserving aesthetics, ensuring that food quality is good, and demonstrating that great dining can be affordable. 

Kundan Lal Jaggi was one of the first people in Delhi to serve Punjabi food. The restaurant is named after him. Today, the restaurant is known for its famous dishes like Butter Chicken and Dal Makhani, which locals and tourists alike love alike..

This is a 21st-century restaurant where people from different backgrounds and with different interests, such as families, corporate workers, travellers, and expats looking for a cheap way to eat great Punjabi food, can come together.

In total, they have 5 restaurants & 1 cloud kitchens. Soon, they will open 5 more restaurants & 5 more cloud kitchens. Their vision is to open 100 restaurants in next 5 years. 

Revenue: 

Their last month Net sales were Rs. 3 crores. In FY 21-22, they made Rs. 22 crores & their year-to-date sales in FY 22-23 are Rs. 18 crores with the projection sales of Rs. 38 crores this year. 

EBITDA is 21% in the public outlets and 13% in the corporate locations. 27% of sales go to the cost of food, 3% to the cost of packaging, 17% to the cost of labour, 17% to the cost of real estate, 15% to overhead and commission, and 21% to EBITDA. 

The average payback period is 18 to 21 months. Approximately Rs. 1.5 to 1.75 crores are needed to set up the new restaurant.

Founder’s Ask 

Rs. 90 lakhs for 0.5% equity at valuation of Rs. 180 crores. 

Offers: 

Vineeta offered Rs. 90 lakhs for 1% equity at valuation of Rs. 90 crores. 

Anupam offered Rs. 10 crores for 20% of Raghav’s equity & Rs. 90 lakhs for 0.5% equity at valuation of Rs. 180 crores. 

Aman gave a conditional offer of Rs. 50 lakhs for 1% equity at valuation of Rs. 50 crores & Rs. 40 lakhs @12% interest rates. (Condition: Aman to be included in secondary offload)

Aman’s revised offer (after founder’s counter offer) was Rs. 90 lakhs for 1% equity at valuation of Rs. 90 crores. (Condition: Aman to be included in secondary offload)

Founder’s Counter Offer

Rs. 90 lakhs for 0.75% equity at valuation of Rs. 120 crores. 

Rs. 90 lakhs convertible debt with a 30% discount on next round’s valuation (valuation to be decided)

Final Deal 

Aman’s offer of Rs. 90 lakhs for 1% equity at valuation of Rs. 90 crores was accepted.