Mumbai: Hyderabad-based ABR Cafe & Bakers Pvt. Ltd, which operates Café Niloufer, known for its Irani chai and bun maska, is working with advisors to explore a fundraising from external investors, three people familiar with the matter said.
“The company has engaged PwC and The Rainmaker Group to explore funding options from external investors,” one of the people cited above said. “The deal is in the early stages and details regarding the quantum of the stake sale are yet to be decided,” a second person added.
The deal has yet to launch, but a potential transaction could value the company at around ₹1,500-1,800 crore, roughly implying a 4-5x forward-looking revenue multiple, a third person said on the condition of anonymity.
PwC, Rainmaker and Niloufer did not respond to Mint’s requests for comment by the time of publishing.
If the potential deal proceeds as planned, it will mark the company’s first round of external capital and join the growing list of other restaurant chains that have raised capital or are in the process of doing so. This comes on the back of robust projections for India’s $80-billion food services market that is projected to grow at a 10-11% compound annual growth rate (CAGR) through 2030, driven by the rapid expansion of organized players.
Founded in 1978 by A. Babu Rao, the senior-most member of the Anumula family, the café has grown into one of the city’s most cherished tea destinations with outlets in Lakdikapul, Red Hills, Banjara Hills, Himayat Nagar and Hitec City. Shashank Anumula currently runs the company, overseeing expansion and operations, with Maya Anumula and Sreeja Anumula following.
The café chain also offers its chai blend through retail formats alongside other products like cookies and chocolates. Some of its specialties include Niloufer tea, Osmania biscuits, cakes & pastries, breads, and cupcakes.
In FY25, the company reported an operating income of ₹205.7 crore from ₹140.1 crore, a year earlier. Its net profit rose to ₹7.8 crore as compared to ₹6.5 crore in FY24, according to filings sourced by Tofler from the Ministry of Corporate Affairs.
The rise of online food delivery and branded dine-in formats has attracted investor interest in India's restaurant and quick-service restaurant (QSR) sector. Mint reported earlier this month that Adyar Ananda Bhavan’s plans to raise capital from Bodhi Tree Systems in a ₹3,000 crore deal, and that global private equity firm Invus Group was nearing a ₹500 crore minority stake in Bengaluru-based restaurant chain Popo Ventures.
Inspira Global acquired Restaurant Brands Asia Ltd (RBA), the operator of Burger King in India and Burger King and Popeyes in Indonesia. Private equity firm Siguler Guff also 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, earlier this year.
Mint also reported on Truffles' private fundraising plans, Subway India's proposed public listing, CX Partners' plans to exit its seven-year-old majority stake in Tamil Nadu-based restaurant chain Thalappakatti Hotels Pvt. Ltd and Bengaluru-based The Filter Coffee raising capital from the family office of the Bikaji promoter.