The CDR brand Dindigul Thalappakatti (“DT”), controlled by CX Partners, has raised a new funding round which is currently worth Rs 860 crore. Tree line investment management with some other well known and reputated private & public individual investors led the funding. The family office of Indian conglomerate ‘Havells Group’ is also a part of the investor cohort.

Dingigul Thalappakatti’s first outlet was opened in 1957 in Dindigul, this restaurant mainly focuses on biryani and casual dining restaurant chain. The restaurant is extensive with 87 outlets and is present in India, USA, UAE, Singapore, Malaysia and Sri Lanka. In India, the restaurant has 79 outlets that operate in Tamil Nadu, Karnataka, Kerala and Pondicherry.

The second round of investments will allow Dindigul Thalappakatti to accelerate its growth plan in the focal markets of Kerala, Andhra, Telangana, Karnataka, Tamil Nadu and Sri Lanka. “Over the next year, Dindigul Thalappakatti plans to establish 2,530 restaurants and kitchens in the cloud. The brand currently operates in more than 85 cloud kitchens and restaurants around the world, ”said Ashutosh Bihani, CEO of Dindigul Thalappakatti.

Dindigul Thalappakatti was quick to achieve 100% EBITDA recovery and remains one of the few F&B brands, which were profitable during FY 2020-21, despite going through the unprecedented events of the COVID pandemic in the last 18 months.

Desai Diwanji acted as legal advisor to the company and the existing shareholders. Sahil Jain, current shareholder, advised the transaction. The brand was previously valued at 450 million rupees after a consortium led by private equity firm CX Partners acquired a majority stake in Dindigul Thalappakatti for 235 million rupees. The October 2019 deal was one of the largest investments in a local restaurant chain brand in India.

Bihani said that Dindigul Thalappakatti has always commanded strong loyalty across south India and more recently in select international markets. “We plan to retain our leadership in the fragmented and commoditized biryani market through faster yet best in class profitable growth.”

Bihani was a private equity investor prior to joining as CEO, and attributes the brand’s differentiation to its unique product offering and value proposition, customer and employee centrality, and a highly profitable restaurant payment model of less 18 months.

Zaheer Sitabkhan, founder of Tree Line Investment Management, said, “We are pleased to invest and partner with Dindigul Thalappakatti as they bring this established and delicious cuisine across southern India and several overseas markets. DT has identified meals people love and at a price point offering fantastic value. We are impressed with what management at DT have achieved to prepare the business to grow and scale across the south and are excited to be part of their journey.”


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