India, July 10 -- Virtual restaurant operator Dil Foods is in talks to acquire Bengaluru-based cloud kitchen brand FreshMenu in a distress sale, sources told Inc42.

FreshMenu suspended operations nationwide in early April after running into a cash crunch. The company has also failed to pay its vendors and employees for the past few months, the sources said.

Confirming the acquisition talks, Dil Foods founder Arpita Aditi said that the discussions between the two companies are currently ongoing. She added that the startup has currently entered into a brand licensing and operator agreement to restart operations at select cloud kitchens of FreshMenu.

"Dil Foods has entered into a brand licensing and operator agreement with FreshMenu, allo...