Global private equity firm Invus Group is close to acquiring a minority stake worth about ₹500 crore in Bengaluru-based Popo Ventures, according to two people familiar with the matter.
The deal is expected to value the restaurant operator at ₹1,100-1,350 crore, the people said, adding that it would mark the company's first external fundraise.
Invus has seen success in its restaurant business investments globally and scaled them well. It aims to replicate the same in India, one of the people cited above said.
Invus and Popo Ventures did not respond to Mint's requests for comment till the time of publishing.
The development comes amid rising investor interest in India's restaurant and QSR space. India's $80-billion food services market is projected to grow at a 10-11% CAGR through 2030, driven by the rapid expansion of organised players. The rise of online food delivery and branded dine-in formats is accelerating this shift.
Founded in 2020 by brothers Abhijit Gupta (AB Gupta) and Nikhil Gupta, Bengaluru-based Popo Ventures operates restaurant brands including The Pizza Bakery, Paris Panini and Smash Guys.
In April, Moneycontrol first reported that the company was in discussions with several investors, including Norwest Venture Partners, A91 Partners, TR Capital and Temasek, for a minority stake sale. The company has been profitable and reported a revenue of about ₹175 crore in FY25.
Deal momentum
The proposed transaction follows a string of deals across India's restaurant and food services sector in recent months.
Earlier this week, Inspira Global completed the acquisition of Restaurant Brands Asia Ltd (RBA), the operator of Burger King in India and Burger King and Popeyes in Indonesia.
In April, private equity firm Siguler Guff invested $40 million in Trimex Foods Pvt Ltd, the exclusive Indian franchise partner for global brands such as Chili's Grill & Bar, PAUL and Cinnabon.
In March, Burma Burma raised ₹38 crore from existing investor Negen Capital and new investors Endurance Capital and Coheron Wealth. Burger Singh secured ₹82 crore in a funding round led by Artal Asia Pte Ltd, alongside Negen Undiscovered Value Fund and Aurum Rising India Fund.
Sector consolidation
Consolidation is also gathering pace across the sector.
Listed player Sapphire Foods India is preparing to merge with Devyani International in a nearly $1-billion deal.
Devyani has also announced plans to acquire homegrown chain Biryani By Kilo, while Wow! Momo raised capital from Singularity in December.
Mint has also reported on Truffles' private fundraising plans, Subway India's proposed public listing, and Bengaluru-based The Filter Coffee raising capital from the family office of Bikaji promoter.