Devyani International to Acquire 80.72% Stake in Sky Gate Hospitality for ₹419.6 Crore

In a move that signals its growing appetite for authentic Indian flavors, Devyani International Ltd (DIL) has announced plans to acquire an 80.72% stake in Sky Gate Hospitality Pvt Ltd, the company behind popular brands like Biryani By Kilo, Goila Butter Chicken, and The Bhojan. The deal, valued at ₹419.6 crore, marks a major expansion of DIL’s already diverse portfolio.

The acquisition was greenlit at a recent board meeting and will see Sky Gate and its subsidiaries brought under DIL’s umbrella. Known for operating international QSR chains such as KFC, Pizza Hut, and Costa Coffee, DIL is now setting its sights firmly on India's burgeoning market for regional and traditional cuisine.

In a regulatory filing, DIL confirmed that the transaction will include a contingent consideration, subject to the achievement of certain performance milestones. Once completed, Sky Gate Hospitality will officially become a subsidiary of the company.

Speaking about the deal, Ravi Jaipuria, Non-Executive Chairman of DIL, said,

"While our portfolio is already rich with global brands, we recognized the need to bring beloved Indian flavors into our fold. Sky Gate’s brands, with their mastery over traditional recipes and cooking techniques, fit perfectly into our vision."

Founded in 2015 by Kaushik Roy and Vishal Jindal, Sky Gate Hospitality has built a strong reputation in India's food delivery space. With over 100 outlets across more than 40 cities, it was among the first to popularize the 'handi biryani' concept — delivering freshly cooked biryani in traditional handis directly to customers’ homes.

The co-founders welcomed the acquisition, expressing optimism about the future.

"We are excited to join hands with DIL, a company that shares our passion for quality and scale," Roy and Jindal said in a joint statement. "Together, we aim to elevate customer experiences and take our brands to new heights."

By bringing Sky Gate’s brands into its portfolio, DIL is not just adding new names — it is bolstering its presence in a high-growth segment where demand for authentic Indian cuisine is soaring.

With the deal, DIL’s roster now spans 10 brands, including recently acquired international names like Tealive, Sanook Kitchen, and New York Fries. The company said the Sky Gate acquisition strengthens its position as one of the fastest-growing QSR operators in India.

For Devyani International, this is more than just an expansion — it’s a strategic pivot towards serving a rising consumer preference for homegrown, hearty meals alongside its well-known global offerings.
As India’s food services market continues to evolve, DIL’s latest move positions it to capture a wider share of the dining table — from pizzas and burgers to biryanis and butter chicken.