EatClub Brands – formerly Box8 – is nearing the completion of a $30 million secondary funding round, in which existing backer Tiger Global is expected to increase its stake, according to sources familiar with the matter.
A91 Partners, a Mumbai-based investment firm, will also participate in the secondary stock purchase, which will see existing backer IIFL sell a portion of its stake in the company, according to the people.
Box8 was first backed by IIFL Seed Venture Funds, the venture capital and private equity arm of IIFL Wealth & Asset Management, in 2016. In addition, as part of a primary capital infusion in EatClub Brands, IIFL and A91 Partners will purchase new shares.
In December 2021, Tiger Global, based in New York, led a $40 million capital infusion into the company. The ongoing secondary transaction is a follow-up to the $300 million round that was completed earlier this year.
“The secondary sale of shares is complete, and all formalities should be closed soon… the size of the round is slightly more than what was initially planned,” said a person in the know.
“As part of our last round, Tiger Global is doing an additional secondary tranche worth almost $11 million,” he said.
The funds will be used to open new kitchens, expand to new cities, and invest in technology by EatClub.
Gupta and Amit Raj, both IIT-Bombay graduates, founded EatClub Brands in Mumbai in 2012.
In 2014, it changed its name from a Mexican quick-service restaurant chain to a multi-brand cloud kitchen model.
It is present in five cities, including Mumbai, Bengaluru, and Pune, and operates eight brands, including Box8 and Mojo Pizza.