Quick-service restaurant giant Devyani International is consolidating its position in India’s fast-growing food services sector by acquiring the remaining stake in Sky Gate Hospitality, the operator of popular brands like ‘Biriyani By Kilo’ and ‘Goila Butter Chicken,’ in a deal valued at around ₹57.5 crore.
The company’s board approved the purchase of an additional 11.4% stake from Sky Gate’s promoters and founders, giving Devyani full ownership. The transaction will be executed through a combination of cash and non-convertible redeemable preference shares, according to a regulatory filing.
Following the announcement of strong Q3 results, Devyani shares rose nearly 10% to ₹125.88 on Wednesday afternoon.
Of the total consideration, ₹27.5 crore will be paid in cash, while the remaining ₹30 crore will be settled via preference shares issued to Sky Gate’s founders. This move builds on Devyani’s earlier acquisition of an 80.72% stake for ₹419.6 crore, bringing delivery-led quick-service brands into its portfolio.
Sky Gate, incorporated in 2015, reported a consolidated turnover of approximately ₹277 crore in FY25, excluding revenues from Krazy Kebab Co. and Peanutbutter & Jelly. Following the acquisition, Sky Gate will become a wholly owned subsidiary, giving Devyani greater operational control and strategic flexibility as it scales its offerings beyond its global QSR partnerships.
While the filing does not detail new expansion plans, the full takeover coincides with Devyani’s pending merger with rival Sapphire Foods, reinforcing its platform-led growth strategy, brand consolidation, and focus on scalable formats beyond traditional dine-in operations.
