Devyani International completes full acquisition of Sky Gate Hospitality

Devyani International has completed the full acquisition of Sky Gate Hospitality, strengthening its presence in India’s fast-growing food services market.

The company has acquired the remaining 11.4% stake from Sky Gate’s promoters and founders for Rs 57.5 crore, taking its ownership from 80.72% to 100%, according to a regulatory filing. The consideration includes Rs 27.5 crore in cash and Rs 30 crore through non-convertible redeemable preference shares.

This transaction concludes the acquisition process that began last year, when Devyani invested Rs 419.6 crore to acquire a majority stake in Sky Gate. The move brings delivery-focused Indian brands such as Biriyani By Kilo and Goila Butter Chicken fully into Devyani’s portfolio, which already includes KFC, Pizza Hut and Costa Coffee.

Founded in 2015, Sky Gate Hospitality reported a consolidated turnover of Rs 277 crore in FY25, excluding certain brands. The company will now operate as a wholly owned subsidiary of Devyani International, enabling tighter integration and faster scale-up.

The acquisition underlines Devyani International’s focus on expanding Indian cuisine brands alongside its global QSR partnerships, as it continues to pursue growth opportunities in the domestic food services space.