Home-grown restaurant chain Burger Singh is planning to raise around Rs 50 crore in series B funding by early next year. The chain that opened its first drive-through in Gurugram is planning to open 100 outlets in the next 2-3 years.
Kabir Jeet Singh, Founder and CEO of Burger Singh said, "We expect to achieve breakeven at the company level by this year-end. Post that we will begin talks to raise series B round of funding of about Rs 50 crore. We will look at roping in institutional and PE investors with a long-term vision," as mentioned in a report in The Hindu Business Line.
Singh said that by the end of the year they expect to have 40 operational outlets, adding that they'll first look at expanding in the northern and eastern regions. Besides Delhi-NCR region, they are also planning to expand in Jaipur, Chandigarh, Lucknow and Kolkata.
The fast casual restaurant that was launched in 2014 expects to open 100 outlets by 2020-21. As a strategic measure, these stores are all going to be small-format stores. They will be around 500 sq ft and will focus on home delivery. Singh said that the primary focus is on strengthening the company's footprint. Singh said that they have adopted a disciplined strategy of looking at small format stores for quicker returns on investment instead of getting into flashy retail locations with high rentals, as mentioned in the daily.
Moreover they are also keen on expanding through franchisee-owned company-operated model. As for the drive-through model, Singh said that they are usually located on highways in India but they believe it is going to work better within city limits and suburbs. That is the strategy they are planning to adopt.
When it comes to expansion, Burger Singh is not only expanding in India. In August, the company announced its entry into the UK market through a master franchise deal. Two outlets are already operational there and another 18 will crop up in the next three years.
Burger Singh that had already raised $1 million in pre-series A funding from investors currently operates 25 outlets, most of which are in Delhi-NCR, as well as in Pune, Nagpur and Dehradun.