Burma Burma, a restaurant and tea room chain based in Mumbai, has successfully raised over ₹38 Cr (approximately $4 million) in a recent funding round, achieving a valuation of ₹500 Cr. This round saw participation from existing investor Negen Capital, along with Endurance Capital and Coheron Wealth.
The company's valuation has surged 233% over the last three years, increasing from ₹150 Cr to ₹500 Cr. With this latest funding, Burma Burma's total capital raised to date now stands at $11 million.
The restaurant plans to utilize the new funds to expand into new cities and strengthen its presence in current markets.
Founded in 2014 by Ankit Gupta and Chirag Chhajer, Burma Burma specializes in authentic Burmese cuisine and operates 21 locations across major cities including Delhi NCR, Mumbai, Bengaluru, Hyderabad, Kolkata, Ahmedabad, and Chandigarh.
Financially, Burma Burma reported a 48% rise in revenue, reaching ₹106.1 Cr in FY25, up from ₹71.9 Cr in the previous fiscal year. The chain also significantly reduced its net loss by 79%, bringing it down to ₹1.3 Cr from ₹6.3 Cr in FY24. Notably, the restaurant chain achieved outlet-level profitability exceeding 21% in FY25, with an EBITDA margin of around 8%.
Co-founders Chhajer and Gupta stated, “This funding enables us to accelerate our expansion while reinforcing our presence in markets where we have already established strong traction.”
Burma Burma faces competition from other casual dining establishments such as Berco’s, Mamagoto, Yum Yum Cha, and Mainland China.
The funding arrives at a challenging time for the restaurant sector, as businesses are grappling with a persistent LPG shortage due to ongoing conflicts in West Asia. Reports indicate that restaurants are experiencing losses between 20-30% due to limited gas supplies, forcing some to temporarily close or reduce menu options that require long cooking times.
In response to the crisis, the central government has instructed refineries to boost production by approximately 10% to stabilize gas supplies.
Looking ahead, the Indian food service market is rapidly growing, projected to reach between $125 billion and $153 billion by 2030-2031, with a compound annual growth rate (CAGR) of 10% to 12%. This growth is driven by increasing incomes, urbanization, and digitization, with organized players like QSRs, cloud kitchens, and restaurant chains expected to capture 55% of the market share by 2030.
