Spring Leaf Retail, a Bangalore-based company that operates quick service restaurant (QSR) chain Mast Kalandar, has raised $6 million from Helion Venture Partners and Footprint Ventures in its Series C round of funding. The funds will be used to scaling up the company’s outlets from the current 40 to 100 across eight cities in the next 18 months. Mast Kalandar currently has a presence in Bangalore, Hyderabad, Chennai and Pune.
Founded by Gaurav Jain and Pallavi Gupta in 2004, Mast Kalandar raised its Series A and B rounds of funding from Helion, Footprint Ventures, and angel investors, the Salarpuria group. The latest round of funding takes the total raised by the company so far to a reported $11 million. The chain specializes in North Indian vegetarian food, offers home delivery, take-away and dine-in options, and currently serves two lakh customers every month. It employs over 550 people. “We believe that this round of funding will help us achieve some remarkable milestones in the coming months,” Jain said in a press release today.
The organized ‘eating out’ market in India is estimated at Rs 8,000 crore and the QSR segment is growing at 25 per cent per year. McKinsey & Co puts the number of Indians eating out at 55 million in 2005, set to grow to 256 million by 2015. The number of Indians eating out in 1995 was 19 million. “The QSR space in India faces challenges such as long gestation periods, rising real estate costs and complexity of logistics and back-end operations. Moreover, Indian food, unlike certain western cuisines, does not lend itself readily to the assembly-line production model. In this scenario, Mast Kalandar has been exceptional in getting the delivery model right and scaling to 40 outlets,” Helion managing director Kanwaljit Singh said.
Image credit: Mast Kalandar