Isthara raises $10M to expand presence in retail food-tech segment
The funding round led by Eagle Proprietary Investments Limited (Eagle Investments) will enable Isthara to foray into the B2C retail food court segment while continuing to expand in the co-living segment.
, a Hyderabad-based premium co-living brand and smart food court pioneer, has raised fresh funding of $10 million (Rs 81 crore) led by Dubai-based Eagle Investments. The current funding round brings Isthara’s total fund-raise to about $21 million.
Isthara, which currently operates in the co-living and institutional smart food court space, said it will deploy the new funds to foray into the B2C retail food court segment.
While Isthara says it has witnessed growth in the B2B institutional cafeteria segment, the company aims to replicate this business success in the B2C space by launching smart food courts across retail locations such as malls, with an aim to become the pan-India market leader in the food court segment. Additionally, with the company’s foray into the B2C food retail segment, it will also be able to widen the customer base potential and not be limited by a captive audience as is the case with institutional cafeterias.
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The startup aims to scale the food court business by 10X to 500 food courts across 30 cities in the next three years, catering to a million people on a monthly basis. Additionally, the funding will also be used to double bed capacity in the co-living and student accommodation segments to around 50,000 beds by 2025, and the company aims to achieve a 10X revenue growth in the next three years.
Founded in 2017, Isthara operates over 24,000 beds across the country. Through its co-living spaces, Isthara provides fully-furnished shared-living accommodation for working professionals and students, with a host of amenities paired with premium features.
In 2020, the company ventured into a new segment by pioneering the digitized smart food court business, and signed up 50 food courts across the country. Since its launch, Isthara smart food courts have witnessed an average per-ticket consumption growth of over 100 percent in each city, as compared to its pre-modified traditional cafeteria format.
Speaking about the new round of funding, Gilbert James, Promoter and Managing Director of Isthara stated,
“The funding that we have raised will enable us to build on our B2C portfolio, aggressively scale our operations across the retail food court market, and be a market leader in the segment. We will also look to strategically expand our co-living presence across the country, and continue to disrupt the space by enhancing our tech-enabled co-living solutions.”
Commenting on the investment, Elias Kawar, Managing Director of Eagle Investments said,
“With its unique business model, tech-focused solutions, and strong scalability potential, Isthara is poised to disrupt the co-living and retail food court segment, and we are excited to support the company’s next growth phase as it continues to make new strides in the liv-tech segment.”
In September 2021, Isthara raised a round of funding from existing investors JM Financial Private Equity, along with Dubai-based Eagle Proprietary Investments and a few family offices. Recently, the company acquired software product engineering firm, ‘Letsmobility’, to digitize operations and introduce advanced tech solutions in the co-living and institutional cafeteria sectors.
Edited by Affirunisa Kankudti