In a significant boost to its ambitious expansion plans, homegrown quick service restaurant (QSR) chain Burger Singh has raised USD 5.5 million (~INR 47.15 crore) in a fresh funding round. The round was co-led by Negen Value Fund and Nine Rivers Capital, with additional backing from Rhodium Trust, Turner Morrison, Thapar Family Trust, and a group of 19 other investors, including notable individuals such as Vikas Kapur, Nomita Kapur, Sarfaraz Singh, and Rohit Khattar.

According to market research, Burger Singh’s board approved a special resolution to issue 4,994 compulsory cumulative preference shares at an issue price of INR 94,430 each to raise capital. Both Negen and Nine Rivers contributed INR 12 crore apiece, while Rhodium Trust invested INR 8.5 crore. Turner Morrison and Thapar Family Trust contributed INR 3.5 crore and INR 2 crore, respectively.

The funds will be strategically allocated towards operations, capital expenditure (capex), network expansion, and general corporate purposes, as per the company’s official filings. This round pegs Burger Singh’s post-money valuation at approximately INR 458 crore (around USD 54 million), though the valuation may vary should further capital be infused in this round.

While Kabir Singh, the founder of Burger Singh, initially dismissed reports of a new fundraising in response to queries from media outlet Entrackr, filings suggest otherwise. The company has not formally released a public statement beyond confirming its growth ambitions.

Ambitious Expansion, Robust Growth

Founded with a vision to be a “desi” alternative in a market dominated by global giants like McDonald’s, Burger King, and Wendy’s, Burger Singh runs a hybrid model with company-owned and franchisee-led stores. As of now, the brand has over 175 stores across 75 cities in India and is aggressive in its expansion plans to reach 1,000+ stores by 2026.

In terms of performance, Burger Singh saw good revenue growth in FY24. The company reported 34% yoy growth in revenue from operations at INR 77.7 crore from INR 57.8 crore in FY23. However, profitability is a challenge as it reported a net loss of INR 27.91 crore for the year ended March 2024. FY25 numbers are not out yet.

Competing in a Crowded Arena

Burger Singh is competing with international QSR brands and domestic chains like Jumboking, Wat-a-Burger, and Burgernama. Despite the intense competition, Burger Singh has managed to carve out a niche by offering a menu that combines Indian flavors with Western formats—burgers with a local twist, momos, fries, beverages, and desserts.

The brand’s unique product mix and franchise model make it an attractive play for investors and consumers in the growing QSR space in India.

The Future

With this new funding, Burger Singh is all set to enter a growth phase. Scaling to 1,000 stores in the next 18 months will require operational discipline, strategic location selection and consumer engagement.

Whether they can sustain the topline growth while becoming profitable is to be seen. What’s for sure is that Burger Singh, now with a new set of investors, has put itself on the growth path with ambitions that match the biggies it competes with.

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