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Dil foods in talks to acquire cloud kitchen brand FreshMenu

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Virtual restaurant operator Dil Foods is in talks to acquire cash-strapped Bengaluru-based cloud kitchen brand FreshMenu. Dil Foods has initially entered into a brand licensing and operator agreement to restart operations at select FreshMenu locations.FreshMenu had suspended operations nationwide in early April and has reportedly faced challenges in paying vendors and employees over recent months.Founded in 2014, FreshMenu was a pioneer in the Indian cloud kitchen industry and previously expanded across major cities such as Bengaluru, Mumbai, and Delhi-NCR. Though backed by investors including Lightspeed Partners, Zodius Capital and Innoven Capital, it struggled following the COVID-19 pandemic.Dil Foods, founded in 2022 by Arpita Aditi, operates nine brands such as Khichdi Bar and Bihari Bowl, partnering with local restaurants to deliver food through platforms like Swiggy and Zomato. Dil Foods recently raised INR 72 Cr (approximately $7.7 M) in a Series B funding round led by Bikaji Foods Family Office, with participation from V3 Ventures, MJV Ventures, and Alteria Capital.

Between Dec 2014 and Apr 2022, FreshMenu had attracted about $ 44 M from Florintree, Lightspeed Ventures, Zodius Capital, Others.For FY25, FreshMenu had reported about INR 122 Cr in Operating Income and about INR 8 Cr in Net Loss.