Ghost Kitchens India Strengthens Gujarat Expansion with Acquisition of Shy Tiger Brands

• ByStartupStory     |    April 9, 2024

Food-tech powerhouse Ghost Kitchens India has made a significant stride in its expansion strategy with the acquisition of Shy Tiger Brands, a prominent cloud kitchen company headquartered in Ahmedabad, Gujarat. This strategic move solidifies Ghost Kitchens’ presence in the Gujarat market while setting the stage for further growth and development. The acquisition follows Ghost Kitchens’ successful equity and debt fundraising round of $5 million USD in February 2024, underlining the company’s robust financial standing and strategic foresight.

Established in 2018, Shy Tiger has carved a niche for itself with 5 multi-brand cloud kitchens spread across Ahmedabad. Led by Mr. Milapsinh Jadeja, Shy Tiger swiftly garnered success, boasting an impressive annualized run rate (ARR) of INR 5 crores. Notable brands under its umbrella include KBOB’s and The Black Chimney. Ghost Kitchens’ acquisition of Shy Tiger signifies a strategic endeavor to fortify its presence in Gujarat by integrating its own brands into Shy Tiger’s existing infrastructure.

In a statement regarding the acquisition, Mr. Karan Tanna, Founder & CEO of Ghost Kitchens, expressed his enthusiasm, stating, “KBOB’s and The Black Chimney are venerable brands with a 15-year legacy in Ahmedabad. We view this acquisition as an opportunity to scale these brands and extend our reach into Ahmedabad and the wider Gujarat market. The existing brand loyalty and high customer retention rates position us strongly for business expansion. By integrating our brands into Shy Tiger’s kitchens, we anticipate improved unit economics and significant revenue growth both locally and statewide.”

Ghost Kitchens had previously made strategic acquisitions to enhance its operational capabilities. In 2022, the company acquired technology firm WTF, enabling the development of proprietary technology tailored to manage business operations comprehensively, enhancing revenue generation, customer experience, and profitability. Furthermore, Ghost Kitchens expanded its portfolio by acquiring Speak Burgers, spearheaded by celebrity Chef Vicky Ratnani, in February 2023, with plans to establish 25 offline retail stores within the subsequent 18-24 months.

Welcoming Ghost Kitchens, Mr. Milapsinh Jadeja, Director of Shy Tiger, remarked, “I have closely observed Ghost Kitchens’ operational model and was particularly impressed by their adept utilization of technology to optimize business processes. With their seasoned team, methodical approach, and in-house technological prowess, I am confident they will elevate Shy Tiger’s brand portfolio to a national level. Hence, I chose to partner with Ghost Kitchens, investing in their current round, thereby endorsing and validating their business model.”

Founded in 2019, Ghost Kitchens operates over 15 company-owned and operated cloud kitchens in Mumbai and Ahmedabad, alongside 1200 internet restaurants across 40 cities in India. With a focused strategy on expanding its company-owned footprint, launching celebrity-endorsed brands, and venturing into retail, Ghost Kitchens sets its sights on achieving an annualized revenue of approximately 200 crores within the next 2 years.

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