Biryani and kebab delivery chain Biryani By Kilo aims to close FY23 with a 122% rise in net revenue to Rs 300 crore, Vishal Jindal, founder and co-CEO, Biryani By Kilo, told BrandWagon Online. Meanwhile, the company expects to close FY23 with a net loss of Rs 40 crore. “We launched our 100th outlet in Kolkata a few weeks ago. We will also foray into the international market next year beginning with the Middle East and Far East. From next year, we will be profitable. We plan to break even from around June 2023,” he added.
The company claims that it currently generates around 10,000 orders per day, with the average ticket price (ATP) being in the range of Rs 700-750. Meanwhile, the cost of customer acquisition ranges from Rs 200-250. As of now, Biryani By Kilo has more than 100 outlets (including 30-35 dine-in outlets) across more than 45 cities, divided equally between metros and non-metros. It claims that the sale split is equal between metro and non-metro cities. Meanwhile, online channels such as its website and food tech platforms such as Swiggy and Zomato, account for about 85-90% of the overall business and the remaining 10% comes from offline channels. “We plan to open 50-60 new outlets every year,” Jindal said, adding that the investment in setting up outlets ranges anywhere between Rs 50-70 lakhs.
According to Jindal, the company is in talks with investors for Series C funding round which is expected to close around January-February, 2023. “We aim to close to Rs 1,000 crore turnover in the next two to three years with healthy positive earnings before interest, taxes, depreciation, and amortization (EBIDTA) and go for an initial public offer (IPO) in three years,” Jindal pointed.
Additionally, the company claims to have allocated Rs 30-35 crore on marketing in FY23. Typically, it claims that the marketing budget is about 30-40% of the revenue. Traditional marketing such as celebrity endorsements, newspaper ads, and hoardings will account for about 30-40% of the overall marketing budgets. While, another 30-40% will be spent on performance marketing and digital marketing on platforms such as Google, Facebook, Instagram, YouTube, Jindal claimed.
In line with its expansion strategy, the company aims to go for limited acquisitions in categories such as healthy ice creams and frozen desserts, among others, with some of them already done. Moreover, the brand, which specialises in four variants such as Hyderabadi, Lucknowi, Kolkata and Guntur, plans to introduce Ambur and Malabari Biryani variants moving forward.