Acquisition · Commerce & Consumer Brands

Dil Foods in talks to acquire distressed FreshMenu

By Startup Enthusiast · 10 July 2026

What they do

Dil Foods operates virtual restaurants using local partners' kitchens

It is in talks to acquire FreshMenu amid the brand's cash crunch

FreshMenu suspended operations due to unpaid vendors and employees

Dil Foods is in talks to acquire FreshMenu in a distress sale context.
The current arrangement involves a brand licensing and operator agreement with FreshMenu.
This deal is not yet a full acquisition but sets the stage for one.
FreshMenu plans to restart operations at select cloud kitchens under its existing brand.
Revival efforts will use Dil's platform, supply chain, tech, and partner network.
FreshMenu suspended nationwide operations in early April 2026 due to a cash crunch.
The company has failed to pay vendors and employees for several months.
Founder Rashmi Daga did not respond to questions regarding the situation.

FreshMenu was once a pioneer in Bengaluru's cloud kitchen sector.
The brand previously employed over 1,100 people and served 5 lakh monthly users.
Its collapse highlights financial instability among some consumer internet startups.
Dil Foods aims to expand its footprint through this strategic move.

Dil Foods operates as a virtual restaurant operator based in India.
It partners with local restaurants to cook and deliver food under its own brands.
Orders are placed via popular apps like Swiggy and Zomato.
The company manages nine distinct food brands across various cuisines.
Brands include Khichdi Bar, Bihari Bowl, House of Andhra, and Junglee Kitchen.
Other brands are Aahar, Dil Punjabi Daily, Bhole ke Chole, The Chaat Cult, and Vegerama.
Dil Foods currently covers 340 pincodes across India.
The company aims to reach 600 locations by FY28.
It raised ₹72 Cr (~$7.7 Mn) in Series B funding recently.

Product: Cloud kitchen and virtual restaurant enabling platform with supply chain, technology, and delivery integration
Customers: Existing restaurants seeking to operate multiple branded virtual concepts with reduced risk
How it makes money: Revenue-sharing model with partner restaurants for virtual brand operations