Bengaluru-based Popo Global, which operates gourmet food brands The Pizza Bakery, Paris Panini and Smash Guys, has received a significant minority investment of ₹532 crore from Artal Asia, part of the US-based Invus group, the companies said in a statement.
Popo Global did not disclose details of the valuation or the size of the stake acquired by the global investment firm.
Mint first reported the deal on July 10. People familiar with the situation said at the time that the deal was expected to benefit the restaurant operator by ₹1100-1350 crores.
“Popo’s highly capital efficient model has enabled it to embark on significant expansion in the Bengaluru market,” the company said.
As Popo Global lays the foundation for expansion beyond the city to realize its global potential, Artal Asia has become a major minority investor in the business.
Popo Global was founded in 2017 by brothers Nikhil Gupta and Abhijeet Gupta. “From a single wood-fired oven a few years ago to one of the largest food deals this year, Popo combines the convenience of QSR, gourmet cuisine and the scalability of delivery kitchens, and has delivered the highest same-store sales growth and repeat rates, best unit economics in its category, becoming the clear leader in the Indian food service space,” the company said in a statement.
Investors
The latest deal brings together Artal Asia, a subsidiary of Artal Group, whose global portfolio includes CAVA, a leading Mediterranean fast food brand in the US, and whose investments in India include Capital Foods, backed by over a decade of its inception. ₹5200 crore acquisition by Tata Consumer Products and now Popo Global.
“Our mission is to empower exceptional entrepreneurs to transform their industries,” added Lee Swee Yin, Director of Artal Asia.
“Bringing Artal Asia into Popo allows us to think much bigger while maintaining the spirit that brought us here – without ever compromising on quality,” Popo’s founders said. “They work with some of the world’s most successful food businesses and understand that the product must remain at the center of attention.”
Rainmaker Group acted as exclusive financial advisor on the transaction. “With Artal Asia’s patient capital and global operating expertise, this well-managed Bengaluru-born company is well positioned to become India’s most loved restaurant business,” said Avijit Goel, Partner, The Rainmaker Group.