Burma Burma, a Burmese restaurant, intends to increase its total number of outlets to 20 by December 2025. Ankit Gupta, the founder of Burma Burma, stated that the brand is set to invest INR 40 crore to support this expansion. Currently, the restaurant chain runs 10 outlets and operates one delivery kitchen across 8 cities.
“We will be opening one outlet each in Mumbai and Bengaluru by February and April, respectively. By December 2024, we will have 14 operational outlets, and by December 2025, we will add 6 more,” he elaborated.
Each outlet of the Burmese restaurant, on average, covers an area of 2,500 sq. ft, and the capital expenditure (CAPEX) required to launch one outlet amounts to INR 3.5 crore.
“We will be opening our new outlets in cities like Delhi, Mumbai, and Bengaluru, and to aid the expansion plans, we are planning to raise approximately USD5 million in our seed round,” he said.
Notably, the brand was bootstrapped for the initial 8 years. However, in 2022, it successfully secured a pre-seed funding round of over USD 2 million, with Negen Capital taking the lead in investments. Additionally, the funding round witnessed the participation of Bbigplas Poly Private Ltd and other investors.
“We are looking to raise anywhere between 3.5 times our turnover. In the pre-seed round, we diluted roughly around 12 percent of our equity, and in this round, we are looking to dilute a further 12-13 percent. We will be wrapping up this round by early next year,” he added.
Additionally, the restaurant chain intends to expand its presence in the modern trade sector through a collaboration with Nature’s Basket with Burma Burma Pantry.
“Currently, Burma Burma Pantry, which is a retail unit of the brand, offers 25 SKUs, including chips, unique pastes, teas, t-shirts, cups, tea-pots, etc. We offer 12 SKUs under the food category, and the rest 13 SKUs come under the non-food category,” he said.
The brand’s products, currently offered at the restaurant, account for 1.5 percent of the brand’s overall business.
Furthermore, the brand’s food delivery service has experienced a significant increase in demand. During the COVID-19 pandemic, it used to constitute 5-6 percent of the total business. Today, it represents 19-20 percent of the total business.
“At present, our average order value online is INR 750, and in restaurants, it is INR 1,000,” he stated.
The brand, which typically achieves a return on investment (ROI) within 18-24 months, closed the previous fiscal year with INR 56 crore in revenue. For the current fiscal year, it aims to reach INR 75 crore in revenue.
