The promoters of Bengaluru-based Truffles Hospitality Pvt Ltd, known for its continental cuisine, premium burgers and desserts, are exploring options to raise capital from private equity firms and have engaged Spark Capital to find buyers for the asset, three people familiar with the matter said.
“The deal has been in the market for quite sometime now and several PE firms have been tapped,” one of the people cited above said.
The transaction could see Truffles’ promoters sell anywhere between a significant minority and a majority stake, depending on the incoming investor and deal structure, the second person said.
“The deal will likely value the overall company at about 3-4x revenue multiple which translates to nearly ₹800 crore,” a third person said, confirming the above details.
India’s $80-billion food services market is projected to grow at a 10–11% CAGR through 2030, driven by the rapid expansion of organised players. The rise of online food delivery and branded dine-in formats is accelerating this shift. Truffles competes across categories with brands such as Leon Grill, Meghana Foods, Third Wave Coffee, and Theobroma.
Email sent to Truffles’ promoter Avinash Bajaj did not elicit a response till the time of publishing, while a spokesperson for Spark said no comment.
Growth trajectory
Founded by Avinash Bajaj and Ruby De, Truffles operates about eight branches and three cloud kitchens across Bengaluru, according to its official website. Its menu spans coffees, burgers, pastas, fries and desserts.
The company has reported steady revenue growth in recent years. Operating revenue rose to ₹159.1 crore in FY25 from ₹140.3 crore a year earlier, according to filings sourced by Tofler from the Ministry of Corporate Affairs. Profit remained nearly flat at ₹17 crore over the same period.
If the fundraise proceeds as planned, the capital will be deployed to scale operations and expand into new cities, one of the people cited above added.
Deal momentum
Truffles’ fundraise effort comes amid renewed investor activity in India’s restaurant and QSR space.
Last month, private equity firm Siguler Guff invested $40 million in Trimex Foods Pvt Ltd, the exclusive Indian franchise partner for global brands such as Chili's Grill & Bar, PAUL and Cinnabon.
In March, Burma Burma raised ₹38 crore from existing investor Negen Capital and new backers Endurance Capital and Coheron Wealth.
Burger Singh secured ₹82 crore in a round led by Artal Asia Pte Ltd, alongside Negen Undiscovered Value Fund and Aurum Rising India Fund.
Separately, listed player Sapphire Foods India is preparing to merge with Devyani International in a nearly billion-dollar deal. Devyani has also announced plans to acquire homegrown chain Biryani by Kilo, while Wow! Momo raised capital from Singularity in December.
Mint also reported on Subway India’s plans to tap public markets and on Bengaluru-based The Filter Coffee raising capital from the family office of Bikaji’s promoter earlier this month.
