[Funding alert] Dindigul Thalappakatti raises Rs 260 Cr from CX Partners, aims to file for IPO in 3 years

Private equity firm CX Partners has invested Rs 260 crore in restaurant food chain Dindigul Thalappakatti Hotels.

This is the first private equity round raised by the hotel chain, which values the business at Rs 600 crore, sources close to the matter told YourStory. The sources also said with this fund raise, Dindigul Thalappakatti Hotels is looking to go public and file for an IPO, in the next three years. 

Further, with this transaction, CX Partners hold half majority in the business, with promoters holding the remaining half. Nagasamy Dhanabalan, Managing Director of Dindigul Thalappakatti, will continue running the business.

The funds have been raised to fuel expansion of the business across India and globally, hire more professional members to the team, and invest in technology operations.

M Vinod Kumar, MD, Advay Capital Advisors was the investment banker to the deal and the adviser from promoter's end.  

While, Balachandar R of Bluekoi Ventures was the adviser to the MD for the deal.

At present, Dindigul Thalappakatti is present across 65 locations across India, and the firm plans to scale this to 200 locations, in the next three years. The food chain will first start by strengthening its presence in South India by opening more stores in Bengaluru and expanding further in Hyderabad and parts of Kerala. Then, it plans to take its expansion spree to other major metros in the country, including Mumbai and Delhi-NCR.

The brand, currently present across seven locations globally, is also looking to increase its presence internationally.

Dindigul Thalappakatti at present has a base of three million customers and serves close to 500,000 biryanis every day. The business has been reporting topline revenues of Rs 300 crore.

With the funding and rich data of customers, the business will further invest funds in its technology functions of quality control, CRM, and ERP to target consumers better. It is also looking to scale its direct food delivery fleet in areas where its partners have low penetration.  

At present, Dindigul Thalappakatti has more than 2,000 employees.

(Edited by Teja Lele Desai)

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