[Funding alert] VRO Hospitality raises $3M in Series A round led by CreedCap Asia Advisors

Bengaluru-based hospitality chain VRO Hospitality on Tuesday said it raised $3 million (Rs 22.5 crore) in a mix of equity and debt funding in a Series A round led by CreedCap Asia Advisors, along with other undisclosed angel investors.

Started by Dawn Thomas, Safdar Adhoor, and Sharath Rice, VRO Hospitality owns and operates F&B brands such as Mirage, Hangover, Badmaash, Nevermind, and Tycoons, among many others in Bengaluru.

During the last 12 months, the startup acquired COVID-hit F&B brands like Fava, Café Noir, Plan B, Caperberry, and One Night in Bangkok amidst the pandemic. It has also ventured into cloud kitchen brands with Burgers and Beyond, Holy Dah Pizzas, and Smashed to adjust to the new world of dining.

VRO will use the fresh funding to expand its horizon to Mumbai, Goa, and Chennai. About 80 percent of the fresh capital will go into new projects, 10 percent on technology and team building, and 10 percent on cloud kitchen brands.

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“Our funding comes at a time when the hospitality industry across the globe is struggling due to the impact of the COVID. The confidence of our investors on us is a testament to our growth potential that we have delivered so far. We are focussed on our growth mode, and this fresh round of funding will help us to stay on the trajectory for success,” said 29-year-old co-founder Dawn Thomas.

VRO Hospitality operates multi-format restaurants, cafes, and lounges across 18 outlets in Bengaluru.

Commenting on the funding, Vishal Pereira, Managing Director at CreedCap Asia, added,

"This decade, F&B brands will be hybrid in nature of operations and own the online/offline experience for customers. The founders at VRO sold their last business to Dineout, and we believe they are the right team to back this hybrid model.”

VRO claims to be running at a 20 percent operating profit, and its revenues have increased by 4.1X since October 2020. VRO employs more than 600 people and plans to build a unique food and beverage platform with offline and online experiences.

“We are looking towards an exciting future. We are planning to add 16 new projects across five cities, including Bengaluru, Goa, Mumbai, Kochi, and Chennai. By the end of the financial year, we also plan to take some of our brands pan-India and also to Singapore and Dubai,” said Dawn.