Bengaluru's VRO Hospitality secures USD 10 million in bridge funding led by Axis Bank and Gruhas, backed by investor Nikhil Kamath, propelling its expansion plans. VRO’s CEO Dawn Thomas emphasises innovation and excellence, envisioning 55 restaurants by this fiscal year-end and 250 in the next four years, targeting annual revenues of USD 250 million. The majority of funding for property acquisitions and tech bolstering illustrates a strategic push for growth. With significant investors and strategic acquisitions, VRO Hospitality emerges as a pioneering force reshaping India's dining landscape.
Bengaluru-based VRO Hospitality, a renowned food and beverages brand known for its operation of high-end lounges and restaurants nationwide, has secured a substantial USD 10 million in bridge funding. The funding round was spearheaded by Axis Bank and venture capital firm Gruhas, which is backed by Zerodha co-founder Nikhil Kamath.
A diverse group of investors contributed to this funding round, including NB Ventures, Kunal Shah, the founder of Cred, and actress Mouni Roy, signifying a strong vote of confidence in VRO Hospitality's vision and growth potential.
This financing round encompasses a blend of equity and debt, strategically allocated by the company to fuel its expansion plans and augment its brand portfolio, which currently boasts 10 brands including Badmaash, Mirage, Plan B, Taki Taki, Los Cavos, Cafe Noir, One Night in Bangkok, Tycoons, Hangover & Nevermind.
Dawn Thomas, the co-founder and CEO of VRO Hospitality, expressed enthusiasm about this critical funding juncture, highlighting its pivotal role in reinforcing the company's commitment to reshaping the hospitality experience through innovation and unwavering dedication to excellence. Thomas had initiated the firm in September 2020 after selling his events company SteppinOut to DineOut.
Further leadership within VRO Hospitality includes Safdhar Adoor and Sharath Rice as co-founders. The founders' journey began 15 years ago with the inception of the above-mentioned events company during their college years; it evolved gradually to cover the food side of the business. Their shift towards the restaurant business after divesting their events company to Times Internet underscores their entrepreneurial adaptability and foresight.
VRO Hospitality got a boost in 2020 amidst the COVID-19 pandemic. As established restaurants encountered challenges, VRO seized the moment to acquire and expand, strategically adding prominent brands like Café Noir, Plan B, and Caperberry to its rising portfolio.
CEO Thomas underscored their aspiration to build the chain to 55 restaurants by the end of this fiscal year, targeting a robust revenue of INR 300 crores. Looking ahead, they aim to establish 250 restaurants over the next four years, projecting an annual revenue of USD 250 million.
A substantial portion, approximately 80%, of the funding is earmarked for acquiring new properties and broadening the company's presence. The remaining funds will be allocated to fortify infrastructure and technology, ensuring a robust operational foundation for sustainable growth.
Abhijeet Pai, co-founder of Gruhas, highlighted the impressive growth trajectory of VRO Hospitality within India's hospitality sector post-pandemic. The successful bridge funding, according to Pai, positions VRO Hospitality for accelerated growth, wider market penetration, and solidifying its standing as a pioneering brand in the dining industry.
In essence, VRO Hospitality's successful funding endeavours, coupled with its strategic acquisitions and expansion plans, position the company as a pioneering disruptor in India's evolving dining landscape.
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