In a resounding vote of confidence for India’s burgeoning premium food and hospitality sector, Hunger Inc, the innovative parent entity behind iconic brands like Bombay Sweet Shop and The Bombay Canteen, has triumphantly secured Rs 215 crore in fresh funding. This electrifying investment, co-led by the astute Lighthouse Funds and DSG Consumer Partners, not only propels the company into its next phase of explosive growth but also underscores a seismic shift in how investors are betting big on experiential dining and artisanal indulgences amid rising disposable incomes.
Picture this: a humid Mumbai evening, where the air is thick with the aroma of spiced chai and molten chocolate. At the heart of this sensory symphony stands Hunger Inc, a homegrown trailblazer that has masterfully blended tradition with audacious creativity since its inception in 2015. Founded by visionary entrepreneurs Yash Bhanage and Sameer Seth, the company kicked off with The Bombay Canteen – a modest yet revolutionary outpost in Lower Parel that dared to spotlight forgotten regional ingredients like kokum and ratanjot in fine-dining spectacles. What began as a single eatery has since blossomed into a formidable portfolio, encompassing Veronica’s (a sultry cabaret-inspired speakeasy), O Pedro (a Portuguese-Indian fusion haven), Papa’s (a homely Italian trattoria), and the whimsical Bombay Sweet Shop, famed for its gravity-defying desserts and hyper-local confections.
This latest funding round, valued at approximately $25 million, marks a pivotal milestone. It facilitates a graceful partial exit for early backers, including tech luminary C.P. Gurnani – formerly of Tech Mahindra – and a cadre of angel investors who nurtured Hunger Inc through its nascent years. In their stead, Lighthouse Funds and DSG Consumer Partners step in with a significant minority stake, bringing not just deep pockets but a treasure trove of strategic acumen. Lighthouse, with its laser-focused portfolio on consumer-centric disruptors, has a storied history of scaling brands like Mamaearth and Kapiva. DSG Consumer Partners, meanwhile, boasts a pedigree in nurturing FMCG and hospitality gems, having backed the likes of Epigamia and Sleepy Owl Coffee.
“This infusion is a catalyst for us to amplify our footprint and refine our operations,” enthused cofounder Sameer Seth in an exclusive interview with The Indian Food Chronicle. “We’ve always believed in the power of storytelling through food – from the tangy nostalgia of a Mumbai street-side vada pav reimagined as gourmet fare, to the intricate layers of a mishti doi cheesecake. With this capital, we’re poised to weave that narrative across more cities, ensuring every bite resonates with authenticity and innovation.”
At its core, Hunger Inc’s appeal lies in its unyielding commitment to hyper-local sourcing and sustainability – a ethos that resonates deeply in an era where consumers are increasingly discerning about their plates. The Bombay Canteen, for instance, sources rare heirloom grains from tribal farmers in the Sahyadris, transforming them into dishes that pay homage to India’s agrarian roots while challenging global palates. O Pedro, with its cobalt-blue tiled facade evoking Goan heritage homes, fuses Iberian techniques with Malvani spices, creating culinary hybrids that have earned it a cult following among foodies and celebrities alike. Veronica’s, hidden behind a nondescript door in Byculla, offers an immersive 1920s jazz-era experience, complete with velvet booths and cocktails infused with foraged herbs. And Papa’s? It’s the comforting embrace of nonna’s kitchen, dishing out wood-fired pizzas slathered in seasonal pestos.
Bombay Sweet Shop, perhaps the crown jewel, has democratized luxury desserts for the masses. From the ethereal ‘Cloud Cake’ – a feather-light sponge suspended in cotton candy clouds – to seasonal specials like mango-kulfi eclairs during the sweltering summers, the brand has redefined indulgence. With five flagship retail outlets and 18 dark stores in Mumbai, it powers direct-to-consumer deliveries via its eponymous website, alongside tie-ups with Swiggy and Zomato. This omnichannel prowess has been instrumental in clocking impressive numbers: Hunger Inc reported revenue from operations surging to Rs 88 crore in FY24, a robust 53% jump from Rs 57.5 crore the previous year. Profitability remains a work in progress, but margins are tightening as the company optimizes its supply chain.
The Rs 215 crore war chest is earmarked for turbocharging these engines. Top of the agenda? Aggressive geographical expansion. Currently a Mumbai monopoly, Hunger Inc is setting its sights on the national capital, with plans to unveil a flagship Bombay Sweet Shop in Delhi within the next 12-18 months. “Delhi’s cosmopolitan crowd craves bold flavors with a desi twist – think our paan-infused macarons or galouti kebab sliders,” Seth hinted, alluding to tailored menus that will blend North Indian staples with the company’s signature flair. Beyond bricks-and-mortar, the funds will fortify production and logistics infrastructure, crucial for scaling perishable delights without compromising on freshness.
What sets this raise apart is Hunger Inc’s burgeoning B2B arm, a stealthy powerhouse that’s quietly rewriting the rules of premium supply. The company already crafts bespoke confections for global giants like Starbucks – think those addictive coffee-chocolate truffles in limited-edition tins – and supplies artisanal breads and pastries to luxury chains such as Oberoi Hotels. In a coup de grâce, Hunger Inc recently inked a deal to provide in-flight treats for IndiGo’s international business class, featuring bite-sized versions of its bestseller, the ‘Bombay Brigadeiro’ – a Brazilian-Indian fusion of condensed milk fudge laced with cardamom and pistachios. These partnerships aren’t mere footnotes; they account for a growing slice of revenue, validating the company’s operational rigor in handling cold-chain logistics, stringent quality controls, and eco-friendly packaging.
This investment arrives at a fertile juncture for India’s F&B landscape, which is galloping towards a projected $12 billion valuation by 2025, per industry estimates from RedSeer Consulting. Post-pandemic, diners have evolved from mere consumers to cultural curators, flocking to venues that offer more than sustenance – they seek narratives, sustainability, and shareable moments for Instagram reels. Hunger Inc embodies this zeitgeist, much like peers such as Masala Library or Indian Accent, but with a distinctly accessible edge. Yet, challenges loom: sky-high real estate costs in Tier-1 cities, talent wars for creative chefs, and the perennial tug-of-war between authenticity and scalability.
Critics might whisper that the hospitality sector remains a high-risk gamble, with 70% of new restaurants folding within three years, according to NRAI data. But Hunger Inc’s track record – zero closures in a decade, even through COVID lockdowns when it pivoted to ghost kitchens and meal kits – silences the naysayers. The Lighthouse-DSG duo’s involvement adds ballast; their playbook has propelled portfolio companies to unicorn status, emphasizing data-driven menu engineering and consumer sentiment analytics.
As India hurtles towards a $5 trillion economy, stories like Hunger Inc’s illuminate the vibrant underbelly of entrepreneurship. It’s not just about funding rounds; it’s about fueling dreams that tantalize the tongue and nourish the soul. With this bold infusion, Hunger Inc isn’t merely expanding – it’s igniting a nationwide revolution in how we savor our heritage, one exquisite morsel at a time. In the words of Seth, “Food is memory made edible. We’re ensuring those memories multiply, from Mumbai’s monsoons to Delhi’s winters.”
This development is a powerhouse affirmation that Indian startups are no longer playing catch-up; they’re scripting the future of global gastronomy.
Also read: From Scrap Metal to $3.3B: Anil Agarwal’s Rise to Riches and His Bold Philanthropic Bet
Last Updated on Saturday, October 11, 2025 11:51 am by Entrepreneur Edge Team https://entrepreneuredge.in/
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