According to a report on ET, Hospitality and food startup Zorambo Hogareno Restaurants will be investing $50 Mn to set up 200 premium cafe outlets under the Zorambo brand name in India, UK, Ireland, Germany and Singapore over 48 months. Of the amount, $9 Mn will be infused within one year, which, he said has already been raised internally.
“We are in advanced discussions for venture capital funding. The concept is scalable and helps us secure a profitable growth path despite the capital intensive nature of the food and beverage industry,” founder Sunil Aswal, formerly with IndusInd Bank, said.
The company has applied for a global patent for the caftaurant, or a cafeteria and restaurant format in the UK, company officials said.
The first 200 stores will be driven by the company, after which it will explore the franchise model, Aswal said.
A report on Indian food services by the National Restaurant Association of India estimates the market to be Rs 5 lakh crore by 2021, and lists challenges such as real estate costs, taxation and high levels of employee attrition.