New Delhi, May 18 -- Dubai-headquartered investment firm Pulsar Capital is among the frontrunners to invest in a bootstrapped eatery chain based in southern India, two people aware of the development told VCCircle.

Pulsar Capital, which last year acquired the India master franchise for the US-headquartered pizza chain Papa John's, is vying to pick up a stake in Bengaluru-based restaurant and cafe chain Truffles Hospitality Pvt Ltd, the people said, asking not to be identified.

If the deal goes through it would expand Pulsar Capital's portfolio of consumer-focused companies in India that also includes coffee retailer Blue Tokai and quick-service restaurant chain Biryani By Kilo.

Pulsar is led by managing partner and former TPG partner Vish Narain. Its overall portfolio also includes telehealth firm TruDoc, digital therapeutics company Wellthy, Dubai-based Cooper Health Clinic, and cross-border e-commerce accelerator Assiduus Global.

Truffles started in 2017 as Ice & Spice by Avinash Bajaj and Ruby De with a single cafe in Bengaluru. According to its website, it runs 11 outlets across Bengaluru, including three cloud kitchens. It offers cake, dessert, burgers, sandwiches, and oriental and fusion food.

The size of the stake that Pulsar could pick up in Truffles or the amount that it might invest couldn't be immediately ascertained. However, the two people cited above said that the company is looking to secure its maiden external funding round and sell a majority stake at a valuation of around Rs 700-800 crore (around $73-83 million).

Investment bank Spark Capital has been appointed to manage the deal.

A third person aware of the matter separately said that mid-market private equity firm Jashvik Capital was also among the contenders for the restaurant chain but has dropped out of the race.

Pulsar Capital, Spark Capital, Jashvik Capital, and Truffles did not respond to VCCircle's queries about the matter.

In 2024-25, Truffles' revenue from operations was around Rs 159 crore, up from Rs 140 crore reported in the previous year. It reported a net profit of Rs 17 crore in FY25, similar to FY24.

Deals for food chains

Dealmaking activity in India's restaurant and QSR chain segment has been strong in the recent past.

Last month, Siguler Guff & Company, an American multi-strategy private market investor with over $18 billion in assets under management, invested $40 million (around Rs 379 crore) in Trimex Foods Pvt. Ltd, the Indian franchise operator of global restaurant brands Chilli's Grill & Bar, PAUL, and Cinnabon.

In March, homegrown burger chain Burger Singh raised Series B funding, led by Singapore-based investment firm Artal Asia.

In January, quick service restaurant operators Sapphire Foods India Ltd merged with Devyani International Ltd. to become one of the largest QSR chains in the country, operating the KFC and Pizza Hut outlets. Last December, quick-service restaurant chain Wow! Momo raised Rs 75 crore from Singularity AMC.

Published by HT Digital Content Services with permission from VC Circle.