Burger Singh restaurant raises $500,000 in fresh funds

New Delhi: Gurgaon-based Tipping Mr Pink Pvt. Ltd, which runs quick service restaurant (QSR) chain and online ordering site Burger Singh, has raised $500,000 in fresh funds from a group of investors, the company said on Monday.

The investors include Avtar Monga, chief operating officer, IDFC Bank; Dheeraj Jain, partner at Redcliffe Capital, a UK-based hedge fund; angel investor Ashvin Chadha; and early-stage investor Udaan Angels.

The firm, which has four outlets in Gurgaon, will utilize this money by expanding in Delhi with six outlets in the next six months. It also plans to enhance its website to drive more orders through it.

“Online ordering ensures minimum error in placing and delivering orders. We aim to enhance the technology so that automated text message goes to the customer with the tracking information. They will be able to get live update of the food being dispatched. The aim is to Uberize the delivery and thus enhance the customer experience,” said Kabir Jeet Singh, co-founder of the company.

Around 35% of the company’s business comes from dine-in, while delivery and takeaway consist of the rest of the business.

According to Singh, the company also plans to raise another $3 million and will be initiating conversation with institutional investors in a few months.

The company was launched in November 2014 by Singh, Rahul Seth and Nitin Rana. Before starting his own venture, Singh was general manager, North India, at the Pint Room; Seth worked at Hope Monkey, a social crowd funding platform, and Rana was employed with restaurants such as Pizza Hut, KFC and Thank God Its Friday.

As the name suggests, Burger Singh offers Indianized version of burgers. Its product line comprises over 13 types of burgers, besides beverages, desserts and fries. The price of the burgers are in the range of ₹ 80-220.

The company has over 40 employees across operations and execution, including six in the senior team. It plans to hire around four to six more people for senior positions.

“Smart menu, solid and impressive on-ground team and filling portions of food, Burger Singh has all the right ingredients for a potential global Indian QSR,” said Dheeraj Jain of Redcliffe Capital.

The fast-food market is expected to reach a turnover of ₹ 7,000 crore by 2015-16, growing at an average annual rate of about 27%, according to data from research and rating agency Crisil Ltd.

The segment has also saw rising investor interest in the last few months.

In August, Kolkata-based Wow! Momo raised an undisclosed amount from Indian Angel Network. Gurgaon-based Biryani Blues raised an undisclosed amount as well from Carpe Diem Capital, a private equity fund, in the same month.