Kitchens@ weighs acquiring Popo Ventures that runs Pizza Bakery, Paris Panini, Smash Guys for Rs 800 crore

Popo Ventures will only engage with buyers if they’re a full acquisition. It is not interested in a part sale or an equity fundraise, as per sources.

Kitchens@, a startup that readies cloud kitchens and rents it out to eateries, is weighing a potential acquisition of majority stake in Popo Ventures through a deal valued at Rs 750-800 crore (around $90 million), laying the groundwork to become a digital accelerator of food brands, people familiar with the developments told Moneycontrol.

Bengaluru-based Popo Ventures is the holding company that runs popular city-based eateries such as Pizza Bakery, Paris Panini - a gourmet sandwich restaurant - and burger joint called Smash Guys.

Kitchens@ and Popo had signed a term sheet and the two parties have been constantly engaging.

“The deal going through or not however hinges on Kitchens@ being able to raise the capital it needs to fund an acquisition this large,” one of the persons cited above told Moneycontrol. The deal terms expire around January 2026, and if the sale happens by then, Popo becomes a part of Kitchens@, else it continues to function as usual.

“Popo Ventures is in no rush to sell – it is profitable and growing. It doesn’t need a buyout to see its next phase of growth,” the person added.

Around a year ago, Kitchens@, run by Junaiz Kizhakkayil, began engaging with potential investors and bankers to raise around Rs 2,000 crore, which it planned to use to bring 3-4 brands into its fold.

Kitchens@, is yet to sign definitive papers to raise the said amount, as per sources. without which it cannot proceed with the planned acquisitions.

Moneycontrol reached out to the founders of Popo Ventures & Kitchens@ but both parties declined to comment.

Sweet Deal

This is not the first time that Popo has been offered a buyout deal. At least four other companies from the food and beverage (F&B) industry have engaged in the past and explored an acquisition of controlling stake. However, none of the negotiations reached advanced stages as the parties could not agree on valuations.

Popo Ventures has an annualised revenue run rate of Rs 175 crore, as per sources.

The Gupta brothers are eyeing a 4-4.5X revenue multiple for Popo Ventures which values the company at around Rs 750-800 crore. “Of all the offers so far, the Kitchens@ offer is the only company that is giving Popo Ventures the multiple it is eyeing,” a second person aware of the deal told Moneycontrol.

“The other players, in the past, only offered a 2x revenue multiple which made the deal unattractive to the brothers,” the person added. Popo Ventures will only engage with buyers for a full acquisition, as it is not keen on part sale or an equity fundraise, as per sources.

Kitchens@ is backed by investors such as Swiggy and Beenext, among others.