KFC operator Devyani buys stake in Sky Gate for $49 mn

Devyani International Ltd (DIL), the franchise operator for global quick service restaurant (QSR) chains such as KFC, Pizza Hut, and Costa Coffee, has announced the acquisition of an up to 80.72% equity in Sky Gate Hospitality Pvt. Ltd for Rs419.6 crore (about $49 million).

The decision was approved at a board meeting held on 24 April.

Sky Gate Hospitality operates Indian cuisine brands including Biryani By Kilo, Goila Butter Chicken, and The Bhojan. With this acquisition, Sky Gate and its subsidiaries will become a part of DIL’s portfolio.

The company said part of the consideration will be discharged through the issue and allotment of 2,37,19,187 equity shares of DIL at a price of Rs176.78 per share, on a preferential basis.

Founded in 2025 by Kausik Roy and Vishal Jindal, Sky Gate runs more than 100 outlets across over 40 cities.

The brand also operates dine-in restaurants and has expanded into multiple regional cuisines through its associated brands.

DIL, promoted by the Jaipuria family, said that the acquisition is a strategic step towards bolstering its presence in the Indian cuisine segment.

“This strategic move aims to enhance DIL’s presence in the Indian cuisine segment by integrating these well-established brands into its portfolio,” the company said.

Non-executive chairman Ravi Jaipuria said, “While our portfolio boasts a diverse array of national and international brands, we identified a need to add traditional and authentic flavors of the much-loved Indian food to our portfolio.”

Founders Roy and Jindal said, “We are confident that our brands have found the right home for future growth and expansion of Sky Gate portfolio. Together, we aim to combine our knowledge and experience to enhance customer offerings and elevate the overall dining and delivery experience.”

With the completion of this transaction, DIL’s brand portfolio will now include 10 food and beverage brands, adding to its recent expansions such as Tealive, Sanook Kitchen, and New York Fries.