In a strategic move to strengthen its presence in India’s booming food and beverage sector, Devyani International Limited has announced the execution of definitive agreements to acquire an additional stake in Sky Gate Hospitality Private Limited (“Sky Gate”), raising its holding from approximately 80.72% to 86.13% on a fully diluted basis. The transaction, valued at up to ₹106.25 crore, is expected to be completed on or before July 31, 2025.
This follows Devyani International’s earlier disclosures dated April 24 and June 10, 2025, regarding its acquisition of a controlling stake in Sky Gate and the issuance of 2.37 crore equity shares on a preferential basis as part of the consideration. Following that deal, Sky Gate and its subsidiaries—Blackvelvet Hospitality, Say Chefs Eatery, and Peanutbutter and Jelly Private Limited—became subsidiaries of Devyani International.
Sky Gate operates a portfolio of popular food brands, including Biryani By Kilo, Goila Butter Chicken, The Bhojan, Get-A-Way, and Krazy Kebab Co. For the financial year 2024-25, the group reported an un-audited consolidated turnover of ₹277 crore, excluding revenues from newer entities.
The latest investment will be made through a combination of subscription to fresh equity shares and purchase of shares from the founders of Sky Gate. The infusion will support Sky Gate’s expansion plans, including investments in its subsidiaries and general corporate purposes.
As the transaction involves a subsidiary of Devyani International, it falls within the scope of a related-party transaction. However, it has been executed at arm’s length terms, and Devyani’s promoter group does not hold any interest in Sky Gate.
Founded in July 2015, Sky Gate has recorded impressive growth over the past three years, with turnover increasing from ₹133 crore in FY22 to ₹277 crore in FY25. With this increased stake, Devyani International is reaffirming its commitment to capturing greater market share in India’s dynamic and fast-growing food service industry.