Quick Service Restaurant (QSR) giant Devyani International Ltd (DIL), the master franchisee for Pizza Hut and KFC in India, has announced the acquisition of an 80.72% stake in Sky Gate Hospitality, the parent company of Biryani By Kilo (BBK), in a deal valued at Rs. 419.6 crore.
The acquisition, which will be executed through a combination of cash and a preferential share issue, marks Devyani’s strategic entry into the premium Indian cuisine segment. Along with BBK, the deal also includes popular brands Goila Butter Chicken and The Bhojan.
“This strategic move aims to enhance DIL’s presence in the Indian cuisine segment by integrating these well-established brands into its portfolio,” the company stated in a filing to the stock exchanges.
Founded by Kaushik Roy and IIT-BHU alumnus Vishal Jindal, Sky Gate Hospitality operates a portfolio of dine-in restaurants and delivery outlets in over 40 cities across India. Following the deal, Sky Gate will become a subsidiary of Devyani International.
The acquisition values Sky Gate at Rs. 519 crore. Of the Rs. 419.6 crore being paid by Devyani, part will be settled via issuance of 2.37 crore equity shares at Rs. 176.78 per share, with the remainder in cash.
The transaction includes Sky Gate’s subsidiaries—Blackvelvet Hospitality, Say Chefs Eatery, and Peanutbutter and Jelly Pvt Ltd. However, Sky Gate’s brand Krazy Kebab Co. and its investment in the dessert brand Get-A-Way will be excluded and transferred within nine months.
Sky Gate reported a consolidated turnover of Rs. 277 crores in FY25, showing steady growth from Rs. 268 crores in FY24 and Rs. 218 crores in FY23.
Shares of Devyani International rose by 2.14% to Rs. 179.15 on the BSE following the announcement.
This acquisition not only diversifies Devyani’s offerings but also signals its intent to strengthen its hold in the premium dine-in and delivery segments, a fast-growing category in India’s evolving food services market.