Introduction

In Shark Tank India - Episode 7, Speed Kitchen captivated the sharks with its innovative approach to the food industry. Founded by Shamin Kapoor and Paurav Kapoor, Speed Kitchen is a co-working kitchen model that caters to food brands by providing them with ready-to-operate kitchen spaces. This allows food businesses to focus solely on their brand while Speed Kitchen takes care of kitchen operations.

The Ask:

• ₹2 crore for 3% equity, valuing the company at ₹66.67 crores.

About Speed Kitchen

Speed Kitchen offers a plug-and-play kitchen model, which is operational 24/7, 365 days a year. The company takes care of all kitchen premises' maintenance, ensuring it’s 100% compliant and hygienic. Their concept allows food brands to set up and start operations in just 4 days.

Key Features of Speed Kitchen:

• Available in 4 cities with 15+ locations and 13+ kitchens.
• Partners with 50+ food brands.
• Provides essential kitchen amenities: CCTV, Wi-Fi, gas bank, plumbing, security, facility manager, and garbage disposal.

Speed Kitchen also offers flexibility by allowing brands to operate multiple sub-brands from a single kitchen. The company shares revenue with food brands and offers flexible contracts with landlords (1, 3, 5, and 7-year lock-in periods).

Speed Kitchen's Growth & Financials

• Founded: March 2021
• Annual Sales:
  • FY 2021-2022: ₹36.5 Lakhs
  • FY 2022-2023: ₹1.51 Crores
  • FY 2023-2024 (till October): ₹3 Crores (Projected: ₹5 - 5.5 Crores)
• EBITDA (FY 2023-2024): 4.5%
• Net Profit (FY 2023-2024): ~2.5%
• Churn Rate: 10 - 12%
• Amount Raised: ₹2.5 Crores in FY 2023-2024

Impressive Partnerships

Speed Kitchen also signed a contract with ITC, expecting to generate ₹7.5 - ₹8 Lakhs per month in revenue.

Sharks' Response & Offers

Vineeta Singh (Sugar Cosmetics):

• Went out due to concerns that the business model wasn’t scalable.

Ritesh Agarwal (OYO):

• Offered ₹2.5 crore for 10% equity (valuing the company at ₹25 crore).
• Azhar Iqbal joined Ritesh’s offer.

Kunal Bhal (Snapdeal):

• Made two offers:
  • ₹2 crore for 8% equity, or
  • ₹2.5 crore for 10% equity.

Aman Gupta (boAt):

• Offered ₹2 crore for 10% equity, but eventually dropped out of the deal.

The Counter Offer

• Founders countered with:
  • ₹2 crore for 4% equity, or
  • ₹2.5 crore for 5% equity.

Kunal’s Revised Offer:

• ₹3 crore for 10% equity.

Final Deal:

After further negotiation, Kunal, Ritesh, and Azhar joined forces and agreed to:

• ₹2 crore for 6% equity.

The founders accepted the deal, securing ₹2 crore with a 6% equity stake.

Conclusion

Speed Kitchen is transforming the food delivery landscape with its plug-and-play kitchens that allow food brands to quickly set up operations. Despite facing some skepticism, the deal with Kunal, Ritesh, and Azhar gives the company the resources to expand and meet the growing demand for food delivery services.

As the food industry continues to evolve, Speed Kitchen's innovative model could become a key player in the future of cloud kitchens and ghost kitchens in India.