Dil Foods, a virtual restaurant platform operating under nine brand identities, has raised ₹72 crore in a new funding round to boost its presence across more Indian cities and introduce additional regional cuisines.
- Raised ₹72 Cr ($7.7 Mn) in Series B funding led by Bikaji Foods Family Office
- Plans expansion from 340 to 600 delivery locations by FY28 including Tier I & II cities
- Operates nine virtual restaurant brands, partnering with over 300 local kitchens
What happened
Dil Foods has successfully closed a ₹72 crore Series B funding round led by Bikaji Foods Family Office, with additional investments from V3 Ventures, MJV Ventures, and Alteria Capital. This capital injection marks a significant milestone since the startup's inception in 2022 and follows its earlier $2 million pre-Series A raise in 2023.
Currently, the company operates in 340 pincodes across six major Indian cities through its network of over 300 restaurant partners. Running nine branded virtual kitchens, Dil Foods leverages local eateries with spare cooking capacity to prepare and deliver meals on popular platforms like Swiggy and Zomato. The new funds aim to scale operations by adding more regional cuisine options, expanding to additional Tier I and II cities, and enhancing backend infrastructure.
Why it matters
The Indian food delivery sector is experiencing rapid growth fueled by rising disposable incomes, increasing internet access, and changing consumer preferences towards convenience. With projections estimating the market to reach $59 billion by 2030, Dil Foods is positioning itself to capitalize on this opportunity through strategic geographic and menu expansion.
By partnering with existing local restaurants rather than building new kitchens, Dil Foods reduces upfront costs and quickly scales its offerings. Its model of supporting partners with supplies, logistics, commissions, and marketing also ensures operational efficiency and mutual benefits. These factors give the startup a competitive edge against peers like EatClub, Rebel Foods, and Curefoods.
What to watch next
Stakeholders should monitor Dil Foods’ progress in expanding from 340 to 600 delivery locations by FY28, particularly its success in penetrating smaller Tier II cities, which represent a growing segment of the market. The startup’s ability to diversify its menu with authentic regional cuisines will also be a key attention point to attract and retain customers across diverse markets.
Additionally, observing how the company manages its partner ecosystem and backend supply chain amid rapid growth will provide insights into its long-term scalability and sustainability. Given the competitive landscape, strategic partnerships and continued innovation in delivery logistics could further influence its trajectory.