Dil Foods Bags ₹72 Cr To Expand Footprint, Launch More Cuisine

Virtual restaurant operator Dil Foods has raised ₹72 Cr (around $7.7 Mn) in its Series B funding round led by Bikaji Foods Family Office, with participation from V3 Ventures, MJV Ventures, and Alteria Capital. 

The Bengaluru-based startup plans to deploy the fresh capital to expand its geographical footprint to Tier I & II cities, launch more regional cuisines, and strengthen its back-end production and supply chain. 

Currently operating in 340 pincodes across India, Dil Foods aims to expand its offerings to 600 locations by FY28. 

Founded in 2022 by Arpita Aditi, Dil Foods runs nine brands, including Khichdi Bar, Bihari Bowl, House of Andhra, Junglee Kitchen, Aahar, Dil Punjabi Daily, Bhole ke Chole, The Chaat Cult, Vegerama. The startup partners with local restaurants to cook and deliver food under these brands via apps like Swiggy and Zomato. 

It claims to have boarded 200+ restaurant partners across six cities so far, including Hyderabad, Bengaluru, Chennai, Pune, Mumbai, and Ahmedabad. 

Explaining the business model, Aditi told Inc42 that Dil Foods provides supplies to restaurant partners with spare capacity to prepare food under its brands, helping them earn revenue on every Dil Food order dispatched. The startup also claims to handle expenses such as commissions, marketing and logistics on behalf of these eateries. 

“Most of the products that are sent from our end are very suitable for quick regeneration and quick deliveries. So, it does not incur a lot of gas and LPG cost. It hardly takes two to three minutes to regenerate the food,” Aditi added. 

With the latest round, Dil Foods has raised more than ₹113 Cr (about $13.6 Mn) to date. It last raised $2 Mn in its pre-Series A funding in 2023. It competes with the likes of EatClub, Rebel Foods, Curefoods, among others. 

The fundraise comes as the Indian food delivery ecosystem continues to grow on the back of rising disposable incomes, increasing internet penetration and user need for convenience. At the heart of all this is the Indian food delivery market, which is projected to become a $59 Bn opportunity by 2030. 

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