Hyderabad-based Indian fast food chain, Hello Curry, has acquired Fire42, technology solutions startup in apart-cash, part-stock deal for an amount undisclosed.
Founded in 2012 by Santosh Achari, an IIT graduate and Srinivasan Rangarajulu, a chef and restaurateur from the US, the startup Fire42’s platform has a set of cloud-powered integrated software that provides management, analytic marketing and operational tools for restaurants. The three year old startup, which functions in the country and abroad, has 15 employees and have handled more than one million orders. Though the company did not make any significant revenues, it is a profit-making firm.
CEO of the Hello Curry, Raju Bhupati said, “The idea is to transform Hello Curry into a food tech company. Acquiring a technology company like Fire42 and then building unique features from the cumulative experience we have on top of this platform will provide us a definite edge.” The key feature of acquiring Fire42 is the ‘on demand delivery’ solution that alerts the delivery staff immediately of an order, thus helps in planning and organizing things better. He added, “If you have to go with commercial POS systems, it is very difficult to implement the changes that we need at the pace we expect.”
This acquisition is the second major one after the acquisition of Paratha Post, a food delivery startup in April 2015. After the completion of deal, Santosh Achari will join Hello Curry’s senior management team and report directly to Bhupati. The services of Fire42 would be rendered to Hello Curry only and may not be available to outsiders. The decision on retaining the work team is yet to be decided, said Bhupati.
Founded in 2014 by Bhupati and his cousin Sandeep Penumatsa, former employee of Reliance Infocomm, Hello Curry is also hunting to purchase sick restaurants and intends to turn them into kitchens to scale up its front-end operations. It has so far purchased a restaurant in Hyderabad and Bengaluru. The company raised around $800K from SRI Capital, an early stage venture fund started by serial entrepreneur Sashi Reddi. Regarding the revenue of the business, “We aim to clock rs.10 crore to rs.12 crore this year and the growth will be 8 to 10 times,” said Bhupati without revealing the last year’s revenue.