How is Dil Foods doing after Shark Tank India?

Founders: Arpita Aditi
Business: Virtual Restaurant Operator
Ask: ₹50 Lakhs for 0.5% Equity
Valuation/ Networth: ₹100 Crores
Funding: ₹2 Crores for 2.67% Equity
Sharks: Vineeta Singh, Peyush Bansal, Radhika Gupta and Ritesh Agarwal
Episode: Season 3 Episode 5

Dil Foods Shark Tank India Pitch:

Dil Foods aspires to incorporate diverse regional cuisines into its offerings of fresh food. The company operates through eight cloud brands, each representing a different region and culture. Dil Foods has established partnerships with more than 65 restaurants, utilizing their resources in parallel. Further, Dil Foods supplies frozen dishes to restaurants, and restaurant chefs have to follow their steps to cook the dish using Dil Foods’ packaging. Orders are received through platforms such as Swiggy or Zomato.

Dil Foods claims to provide standardized, hygienic, and authentic regional Indian food. With a commitment to maintaining consistency, 68% of their dishes are standardized across all outlets. Furthermore, Over the past 1 1/2 years, the company’s expansion has been notable, with a presence in 111 outlets, contributing to a remarkable incremental revenue of ₹6 Crores for their restaurant partners. Customer ratings reflect a high level of satisfaction, with an overall 4-star rating.

Dil Foods Financials during Shark Tank India:

In the fiscal year 2022-2023, Dil Foods recorded sales of ₹7 crores with a burn of 1 crore. Further moving on to the fiscal year 2023-2024, as of October, they have achieved sales of ₹13.16 crores and are projecting a year-end sales target of ₹30 crores. The profit till October stands at ₹87 lakhs, and they anticipate a year-end profit of ₹2.2 crores.

In terms of funding, Dil Foods raised ₹1 crore in April ’22 with a valuation of ₹14 crores. In September ’22, they secured an additional ₹40 lakhs with a valuation of 40 crores. Subsequently, they raised another ₹40 lakhs with the same valuation. Also, In July ’23, the company raised a significant sum of ₹15.5 crores with a valuation of ₹75 crores. Arpita Aditi, the visionary founder, holds the ambition of steering Dil Foods towards becoming a ₹7500 Crore company within the next 5 years

Breaking down their financial structure, Dil Foods has an average order value of ₹300. From this, 31% goes to the restaurant, 6% is allocated to packaging costs, and 10.5% is earmarked for marketing expenses. Logistics and miscellaneous costs account for 1%, while chef salaries constitute 1%. Swiggy and Zomato take a 22% commission, and employee salaries represent 11.97% of the expenses. Factory and utilities expenses amount to 4.88%, leaving an EBITDA of 11.65%.

Who are the founders of Dil Foods?

Dil Foods, founded in 2022 by Arpita Aditi. Aditi, originally from Ranchi, Jharkhand, holds a background in bio-tech engineering from MIT Manipal. Prior to establishing Dil Foods, she contributed significantly to the food industry during her two-year tenure at Swiggy. In her role, she focused on creating national partnerships, engaging with over 5000 restaurants during that period

Dil Foods Shark Tank India Negotiations & Funding:

Vineeta led the negotiations by putting forward an offer of ₹50 Lakhs for 0.5% equity, which was promptly matched by Radhika. Ritesh then proposed a joint offer with Vineeta, suggesting 1% equity for ₹1 Crore. In a strategic move, Ritesh also extended an invitation to Radhika, offering 1.5% equity for ₹1.5 Crores. Expressing interest, Peyush joined the conversation with a 0.5% equity share.

However, Aman opted out of the deal, aligning with the belief that too many cooks spoil the broth. He chose to redirect his focus and time towards entrepreneurs he deemed to be in greater need.

Vineeta and Peyush, in a strategic move, revised their offer to ₹2 Crores for 2.67% equity, aiming to bring four sharks on board. Aditi, considering the collective expertise and resources offered by the group, agreed to and finalized the deal.