Dil Foods in talks to acquire cloud kitchen pioneer FreshMenu
Indian food logistics company Dil Foods is reportedly in discussions to acquire cloud kitchen brand FreshMenu. The deal could represent a rescue for FreshMenu, which has faced financial difficulties.
Dil Foods, an Indian food logistics company, is in negotiations to acquire FreshMenu, a Bangalore-based cloud kitchen brand. Reports indicate the potential transaction could be a distress sale.
FreshMenu suspended its nationwide operations in early April due to a cash crunch. The company has also failed to pay its vendors and employees for several months. Arpita Aditi, founder of Dil Foods, confirmed the ongoing discussions and stated that an initial brand licensing and operator agreement is in place to restart operations at select FreshMenu kitchens.
Under this agreement, Dil Foods will operate select locations under the FreshMenu brand, leveraging its own operational platform, supply chain, technology, and restaurant partner network to aid in FreshMenu's revival. Aditi clarified that broader acquisition talks are confidential and ongoing, and the current arrangement is a licensing and operating agreement, not a full acquisition.
Founded in 2014, FreshMenu was an early player in India's cloud kitchen industry, offering meal delivery across several major cities. The COVID-19 pandemic significantly impacted the sector, affecting FreshMenu, which has since worked to stabilize and expand. Dil Foods is a rapidly expanding company managing nine food brands and aims to extend its reach to 600 locations by 2028.