The Brand’s Growth Amid a Competitive Market
Biryani By Kilo (BBK), a prominent omnichannel brand in India’s rapidly growing biryani culture, has achieved a notable 22.9% increase in its revenue for the fiscal year 2024. The company’s total revenue from operations reached Rs 268 crore, up from Rs 218 crore in FY23. This growth reflects the brand’s continued popularity, especially in a market that has seen a surge in hybrid kitchens offering niche menus.
BBK’s menu, consisting of biryani, kebabs, korma, curries, and more, continues to drive its financial success, contributing 94.76% of its total revenue, which amounted to Rs 254 crore in FY24. Additionally, the company saw revenue from delivery services grow to Rs 14 crore, signaling the increasing demand for food delivery services, a significant trend in India’s food-tech sector.
Despite the rise in revenue, BBK has been actively working to reduce its losses, posting a significant reduction of 29.7%, from Rs 101 crore in FY23 to Rs 71 crore in FY24. This has been achieved through improved cost control, particularly in areas like advertising and employee benefits.
Revenue Breakdown: Core Business and Delivery
The bulk of BBK’s revenue comes from its core business: its range of biryanis and complementary dishes. This segment grew by 23.3% year-on-year, accounting for nearly Rs 254 crore in FY24. The company’s focus on quality and a strong delivery infrastructure has enabled it to cater to the increasingly tech-savvy consumer, where delivery services are becoming an essential part of the food experience.
Interestingly, BBK also saw a modest addition of Rs 4 crore in non-operating income, mostly generated through interest, pushing the company’s overall revenue to Rs 272 crore for the fiscal year. While the company’s revenue growth is encouraging, the key focus for BBK remains on expanding its market presence while managing the rising costs of materials and operations.
Operating Costs and Expenditures
BBK’s cost structure reflects the challenges of scaling up in the competitive food industry. The procurement cost for materials, which accounts for 32% of its total expenses, increased by 16.8% to Rs 111 crore in FY24. As the company grew, so did its need for raw materials, particularly as the demand for its signature dishes increased.
In contrast, the company managed to reduce its employee benefits expenses by 11.4% to Rs 70 crore. This reduction comes as a result of streamlining operations and optimizing staff levels, helping to control operational costs. BBK also cut its advertising budget by 15.2%, signaling a more measured approach to marketing spending while still maintaining brand visibility.
Other expenses, including overheads like rent, commissions, and transportation, contributed to an overall increase in expenditures, which rose from Rs 321 crore in FY23 to Rs 346 crore in FY24. Despite this increase in costs, BBK’s revenue growth outpaced the rise in expenses, which is key to its continued operational efficiency.
Loss Reduction and Financial Health
BBK’s efforts to scale its business efficiently are evident in the reduction of its losses. The company posted a significant 29.7% decrease in losses, down to Rs 71 crore from Rs 101 crore in FY23. While the company’s EBITDA remained negative at Rs 51 crore, there was an improvement in both its EBITDA margin and Return on Capital Employed (ROCE), which stood at -51.5% and -18.75%, respectively. These metrics, although still negative, reflect improvements in operational efficiency, which are critical for long-term profitability.
One of the company’s most significant achievements is the reduction of its burn rate. In FY24, BBK spent Rs 1.29 to earn a single rupee, compared to previous years when the cost of acquiring each unit of revenue was higher. This improvement signals that the company is refining its operational and financial strategies, gradually moving towards more sustainable growth.
Investment and Future Growth Plans
To date, BBK has raised around $55 million in funding, including a $35 million Series B round led by Falcon Edge in 2021. This funding has been instrumental in the company’s expansion, allowing it to scale its operations and compete with other major players in the market, such as Rebel Foods’ Behrouz Biryani and Biryani Blues. BBK’s valuation is estimated at around Rs 840 crore ($105 million) post-allotment, reflecting the brand’s growing presence in the Indian food delivery and cloud kitchen sector.
Looking ahead, BBK aims to continue expanding its reach and refining its business model. The company’s success in growing revenue while reducing losses places it in a strong position to navigate the competitive landscape of food delivery services, which continues to evolve as consumer preferences shift.
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