Happy Hakka, a quick service Asian restaurant chain, plans to raise between $5 million and $8 million to fund its expansion in north India, said one of its existing investors.
The Delhi-based venture had got Rs 1 crore in seed funding from Ajay Relan, managing partner of mid-to-growth stage private equity firm CX Partners, and a similar investment from Gautam Ghai, founder of SourceFuse, an investment firm that helps startups with their operations and takes a small stake.
Happy Hakka currently has three outlets in Delhi, and one in Noida. It plans to expand to 50 outlets in the next 24 months. Much of the planned funding will go towards that, Ghai said in a chat with DealStreetAsia. The chain takes orders through its website and its app, apart from food delivery platforms such as Foodpanda and TinyOwl.
Happy Hakka currently serves 400-450 orders a day, out of which 80 per cent are from existing customers. The stores are delivery-only, and not restaurants. The food is prepared at a company-owned central kitchen that supplies to its outlets, which in turn deliver to customers in their assigned areas. That has helped them keep costs down, and is among the first such operations in Delhi. Mumbai-based Noodle Play has a similar model.
The firm has appointed Red Dot Advisors to help raise the funds in the next 2-3 months.