Kunafa World
Initial Ask – Rs. 90 lacs for 5% equity at a valuation of Rs. 18 Cr.
About the Company
It provides a new, Middle Eastern Dessert, which is served with honey syrup. There are several variants in the Kunafa area.
It has 4 units in Bangalore and 5 outside Bangalore. The company has a central kitchen. The central kitchen prepares the raw material and dispatched for the other branches. The branches then prepare the fresh Kunafa as per order using these raw materials.
The company is operating like a QSR for a niche dessert product.
The Capital Expenditure in the business has been very high, because the standing of a restaurant needs a proper ambience.
In the long run, the ready-to-eat model is something which the company might be looking forward to in the future.
Past performance of the Company
Their sales figures can be given like this: First year – rs. 55 lacs, Second year – Rs. 2 Cr., Year to date (till November)- Rs. 1.7 Cr., of which previous month’s sales were of Rs. 30 lacs. Brand fees collected from franchises is Rs. 13 lacs, and royalty collected is Rs. 4.5 lacs.
Industry Overview
The dessert industry is overcrowded with innovative items. Kunafa is a Turkish Dessert, which is served with coffee or some bitter item. However, there are not any proper arranged players selling Kunafa.
Kunafa is made with pure cream and requires a secret recipe.
The main doubt is over having Kunafa as a hook dessert for a large mass of people. Therefore scalability is very difficult.
The Ready-to-eat market is also very clustered with many products from many brands.
Offers made, and the one accepted:
No offers were made!