Devyani International has consolidated its presence in India’s fast-growing food services market by acquiring the remaining stake in Sky Gate Hospitality, the operator of popular brands such as Biriyani By Kilo and Goila Butter Chicken. The transaction, valued at approximately ₹57.5 crore, gives Devyani complete ownership of the company.
In a regulatory filing, Devyani said its board has approved the acquisition of an additional 11.4% stake in Sky Gate from the promoters and founders, taking its holding to 100%. The deal will be executed through a combination of cash and preference shares. Of the total consideration, ₹27.5 crore will be paid in cash, while the remaining ₹30 crore will be settled through the issuance of non-convertible redeemable preference shares to the Sky Gate founders.
The move builds on Devyani’s earlier acquisition of an 80.72% majority stake in Sky Gate for ₹419.6 crore, which marked the company’s entry into Indian-origin, delivery-led food brands alongside its global quick service restaurant (QSR) partnerships.
Sky Gate Hospitality, incorporated in 2015, operates in the food and beverage segment and reported a consolidated turnover of around ₹277 crore in FY25, excluding revenues from Krazy Kebab Co. and Peanut butter & Jelly. Following the latest acquisition, Sky Gate will function as a wholly owned subsidiary of Devyani International.
The full takeover is expected to provide Devyani with greater operational control and strategic flexibility as it looks to scale its portfolio beyond international QSR brands such as KFC, Pizza Hut and Costa Coffee. While the company has not outlined specific expansion plans for Sky Gate, the transaction signals that homegrown, delivery-friendly brands are becoming a core pillar of Devyani’s growth strategy.
The acquisition comes at a time when Devyani International is also preparing for a proposed merger with rival Sapphire Foods, a move aimed at creating a larger, platform-led restaurant company with a diversified brand mix. Market sentiment around the company remained positive, with Devyani International shares rising nearly 10% following the announcement of strong third-quarter results.
With full ownership of Sky Gate Hospitality, Devyani is doubling down on Indian cuisine brands and formats that extend well beyond the traditional dine-in model, reinforcing its ambition to build a broader and more resilient food services portfolio.