Ace investor Ashish Kacholia acquired a 17.2% stake in national shares burger chain Jumboking, making it the second largest shareholder. The investment, of an undisclosed amount, was made through a secondary market transaction after the Triton Fund left the company.
Experts estimate the transaction to be valued at between Rs 70 million and Rs 80 million, putting the value of the popular quick-service restaurant chain at Rs 400-500 million, states an ET report. Jumboking, with 170 stores in Mumbai, Delhi, Hyderabad and Pune, reported sales of Rs 110 million in the last fiscal. It is the third largest burger chain in India, after McDonalds and Burger King.
Founder of Jumboking, Dheeraj Gupta, highlighted the effectiveness of franchising to expand businesses globally. He spoke about Jumboking's understanding of the Indian palate, giving them an edge in the market despite burgers being a Western concept.
Originally started in 2001 by selling vada pav, a popular street food in Maharashtra, Jumboking pivoted to focus on burgers in 2017 with the goal of expanding to 1,000 stores by 2030.
Ashish Kacholia, known for his success in identifying high-growth multi-bagger stocks, owns shares worth Rs 3,000 crore in listed companies. His company, Lucky Securities, has invested in over 60 mid-sized companies, with significant investments in Shaily Engineering, PCBL, Safari Industries and Garware Hi-Tech Films.
Expressing her enthusiasm for Jumboking, Kacholia praised the company's execution and customer-centric approach, calling it India's most promising quick service restaurant (QSR) story.
The organized foodservice market, valued at US$27.1 billion in 2023, is expected to witness a compound annual growth rate (CAGR) of 12% in the chained category from 2020 to 2026. This growth is attributed to increasing penetration and expansion in non-metropolitan cities.
Pakhi Saxena, head of retail and consumer goods at Wazir Advisors, highlighted the rapid growth of the QSR segment in the organized food market. She emphasized the potential for further expansion as the Indian population embraces urbanization and modern lifestyles.
Jumboking, operating as an asset-light company with 100% franchise, has reported a seven-fold increase in sales since repositioning in 2017. The company's entrepreneurial franchise model prioritizes profitability, with the aim of doubling revenue in the next two years, expand in Delhi and Hyderabad and enter the Bangalore market this year.