Founders & their story

• Arpita Aditi

Numerous restaurants have shuttered their doors in the past two years, with over 2 lakhs closures due to low profits and heavy staff dependence. Enter Dil Foods, a virtual restaurant operator revolutionizing the industry with a unique model inspired by India’s diverse cultures. Through strategic alliances with both big and small restaurants, Dil Foods operates virtual kitchens, handling last-mile cooking and final distribution.

With a portfolio of 8 cloud brands, Dil Foods provides struggling restaurants with an opportunity to leverage its resources and generate extra revenue without additional investment. The collaboration allows partners to utilize the same kitchen, ensuring standardized and hygienic food delivery. Currently boasting 65+ restaurant partners with 111 outlets, Dil Foods has contributed over 6 crores in incremental revenue to its partners, fostering a sustainable ecosystem within the restaurant industry.

Founded in April 2022 by a visionary entrepreneur, Arpita, from Jharkhand with a background in engineering and a history of leading natural partnerships in Swiggy, Dil Foods operates as a virtual franchise for signed-up restaurants. Each restaurant is assigned a Dil Foods brand based on its capacity and target demographic, promising additional income. Dil Foods owns the brand, recipe, and supply chain, with restaurants following specified recipes and using provided supply mixes for order dispatch in Dil Foods packaging.

Utilizing lyophilization and freeze-drying techniques, Dil Foods equips restaurants with kits, ensuring a replenishment time of 2 days. Although not all SKUs have been standardized, the company successfully raised 15.5 crores in July 2023 at a valuation of 75 crores. With a vision to achieve 7500 crores in 5 years, Dil Foods is positioned as a capital-light business, pioneering a transformative approach to revive the restaurant industry.

About the company:

Revolutionizing the restaurant landscape, Dil Brands is propelling the industry into the 21st century, simplifying the dining experience for food enthusiasts who can now savour their favourite dishes from the comfort of their own homes. More than just aiding restaurants to survive, Dil Brands envisions their prosperity.

By seamlessly connecting kitchens with surplus capacity to the realm of intelligent online food delivery, Dil Brands is charting a course toward a brighter future for the entire food industry. Picture this: restaurants boosting their monthly earnings by lakhs, utilizing existing staff and kitchen resources. The process is effortless—fulfilling orders for delivery-only brands translates to a substantial profit margin ranging from 30% to 50%.

Dil Brands specializes in crafting and operating virtual brands tailored to meet the daily meal needs of India. This innovative approach empowers small and medium-sized restaurants, enhancing their asset and resource utilization through the deployment of virtual brands, ultimately redefining success in the culinary landscape.

Revenue: 

In the fiscal year 2022-23, Dil Foods reported revenues of 7 crores with a loss of 1 crore. Looking ahead to the fiscal year 2023-24, the company anticipates substantial growth with projected sales reaching 30 crores and a projected profit of 2.2 crores. An initial investment of 3.5 crores has fuelled this expansion.

With a logistics cost at a minimal 1%, Dil Foods maintains an efficient operation. Across all its brands, the company boasts a favourable rating of 4, reflecting customer satisfaction. The average order value stands at 300, with 31% of this amount allocated to partnering restaurants. After factoring in other costs, Dil Foods achieved an EBITDA of 11.35% in the last month, indicating a robust financial performance. This impressive result underscores the company’s commitment to achieving profitability and sustained growth.

Founders’ Ask 

50 lakhs for 0.5% equity at the valuation of Rs. 100 crores.

Offers:

Vineeta: 50 lakhs for 0.5% equity at the valuation of Rs. 100 crores.

Radhika: 50 lakhs for 0.5% equity at the valuation of Rs. 100 crores.

Vineeta and Ritesh: 1 crore for 1% equity at the valuation of Rs. 100 crores.

Vineeta, Ritesh and Radhika: 1.5 crore for 1.5% equity at the valuation of Rs. 100 crores.

Vineeta, Ritesh, Radhika and Piyush: 2 crores for 2% equity at the valuation of Rs. 100 crores.

Vineeta, Ritesh, Radhika and Piyush: 2 crores for 2.67% equity at the valuation of Rs. 75 crores.

Final Deal

Vineeta, Ritesh, Radhika and Piyush: 2 crores for 2.67% equity at the valuation of Rs. 75 crores.