Incucapital, a subsidiary of Indiaco Ventures, invested Rs 40 lakh in J&R Hospitality Management Pvt Ltd, which operates F&B chain Steammo.

The investment is the first tranche of investment and will see Incucapital's Prashant Maharaj joining the board of Steammo.

Founded by Jabish and Ravisha, Steammo offers steamed quick service food through brand kiosks, which is a concept specialty food service. Product trials have been on for the last couple of months and the current funds will be used to scale up its kiosk footprint.

These kiosks will be established under different formats across food courts in different cities. Steammo plans to open around 20 outlets in the next 6 to 8 months.

Incucapital Advisors' first fund was the Rs 100 crore 'Incucapital Fund I' launched June last year and invests in early stage ventures of deal sizes between Rs 50 lakh and Rs 8 crore.

Among its other investments is Loginworks Software, a company that provides end-to-end IT solutions across sectors and products.

The F&B industry is seeing a lot of M&A activity these days. In April, New Silk Route Partners invested Adiga, a South Indian vegetarian restaurant and fast food chain. Last October, Sequoia invested $5 million in Pune-based kebab and wraps chain - Faaso's. In the same year August, India Equity Partners invested $35 million in Sagar Ratna, a Delhi-based South Indian restaurant chain. Goli Vadapav also raised $4.7 million from Ventureast.