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Last Updated : May 24, 2019 06:21 PM IST | Source: Moneycontrol.com

Zorambo raises $1.5 million from Dubai-based HNIs

In the next 12 months, it plans to operate 14 outlets across India and the UK.

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Representative image
Representative image

Hospitality startup Zorambo has raised $1.5 million from multiple Dubai-based high net individuals and plans to raise $5 million more in the next 12 months.

"We have already closed $1.5 million. There are about 3-4 investors from Dubai. Lot of this is also convertible notes. This year we plan to raise another $5 million," said Dhruv Verma, co-founder of Zorambo, adding that the funding will be utilised in expanding the number of outlets under its brand. Currently the company has opened three outlets in Gurgaon. They have positioned them as a mix of cafe plus restaurant sort of a structure.

In the next 12 months, it plans to operate 14 outlets across India and the UK.

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"We were supposed to launch in the UK first but because of some paper work it got delayed. Now UK should go live by next month," said Verma.

The company is offering fusion food at its outlets with almost 70% of its cuisine consisting of north Indian food.

In the next 48 months it plans to have a massive expansion of 200 outlets across the UK and India with almost 60% of the outlets being in the UK. It will need an investment of $50 million for the same. According to Sunil Aswal, the other co-founder, the target is to raise a total of $50 million in the next 36 months to support the expansion plan.

However, Zorambo will not be raising the entire amount by selling its equity.

"We will not do all equity it will be a mix of debt and equity. It is very easy to service debt in a cafe mode because the cash flow is always there," said Aswal.

The company also plans to have a conference room within the dine in area which can be utilised as a co-working centre.

Its premium outlets will be located in Tier 1 cities of India across corporate houses, residential complexes and universities and Indian dominated catchments abroad along with busy zones like bus terminals, tube stations, stadiums and entertainment zones.

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First Published on May 24, 2019 06:21 pm
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