Aditya Birla Private Equity, a part of the Aditya Birla Financial Services Group, has invested an undisclosed sum for a minority stake in fine dining restaurant operator Olive Bar and Kitchen Pvt. Ltd, which owns the Olive, Monkey Bar, LAP, Ai and Soul Fry brands.
According to people close to the deal, the PE firm has could have committed up to $15 million to Olive Bar and Kitchen, to be paid in tranches. Bharat Banka, chief executive, Aditya Birla Capital Advisors,
declined to give details of the deal.
This is the second investment from Aditya Birla Private Equity–Sunrise Fund, a Rs.300 crore fund that focuses on providing growth capital to proven businesses in early-stage but high-growth sectors.
“It’s not easy to fund interesting companies in this space. We are looking for brands that are profitable, have been institutionalized and are scalable,” Banka said in a report by HT Mint. Banka further added that the PE fun evaluating 20 dining chains before finalising on Olive Bar.
Banka said many companies in the restaurant space have been created by people who are passionate about food. These, however, may not find many financial backers, he cautioned.
“We look for people who are building a brand, who run the business with discipline and understand the concept of issues like real estate, staffing and décor,” he said.