Dharana Capital Fuels Petpooja’s Growth with ₹137 Cr Investment Boost
In a pulsating development that’s set to reshape the heart of India’s vibrant food and beverage (F&B) sector, Dharana Capital, the trailblazing India-centric growth-stage investment firm, has taken the helm in a landmark ₹137 crore funding round for Petpooja, the undisputed champion of cloud-based SaaS solutions for restaurants. This electrifying infusion – a masterful blend of primary and secondary capital – isn’t just financial firepower; it’s a clarion call for digital metamorphosis in an industry teeming with untapped potential and everyday chaos.
Petpooja, co-founded in 2011 by the dynamic duo of Parthiv Patel and Apurv Patel, has long been the unsung hero for the nation’s 1.5 million-plus restaurants – many of them mom-and-pop eateries scraping by on razor-thin margins. Today, with over 50,000 clients spanning India, the UAE, South Africa, and even dipping toes into Canada, Petpooja isn’t just surviving; it’s thriving, processing a staggering 1.5 million daily orders and clocking an annualized gross merchandise value north of $2.5 billion. And now, with Dharana’s war chest in hand, it’s poised to catapult from reliable workhorse to industry titan.
Let’s rewind a bit for context. The Indian F&B market is no sleepy backwater – it’s a roaring behemoth projected to swell to a mouthwatering $125 billion by 2029, fueled by urbanization, rising disposable incomes, and a millennial generation that’s as addicted to food delivery as it is to their smartphones. Yet, beneath this glossy facade lies a gritty reality: small and medium-sized restaurants (SMEs) – the lifeblood of our culinary scene – grapple with archaic operations. Inventory mismanagement leading to spoiled stock, billing errors that bleed profits, and a labyrinth of online orders from Swiggy and Zomato that overwhelms understaffed kitchens. Enter Petpooja: a holistic operating system that bundles point-of-sale (PoS) billing, real-time inventory tracking, customer relationship management (CRM), seamless online ordering integrations, payment gateways, and razor-sharp analytics into one intuitive dashboard. It’s like giving a street-side chaatwala the brains of a five-star hotel – minus the fuss.
This latest funding round, led unapologetically by Dharana Capital, also drew a constellation of heavy-hitters: Ashish Gupta, the visionary co-founder of Helion Ventures; Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, the founding trio behind Urban Company’s home-service empire; and Mukund Kulashekaran, Urban’s Chief Business Officer. These aren’t passive check-writers; they’re battle-tested operators who’ve scaled unicorns in India’s hyper-competitive startup arena. Their buy-in signals more than money – it’s a resounding vote of confidence in Petpooja’s blueprint for the future.
Vamsi Duvvuri, Founder and Managing Partner at Dharana Capital, didn’t mince words in his statement: “As India’s food service ecosystem undergoes rapid digitization, Petpooja has emerged as the core technology backbone for restaurants. Their platform isn’t just software; it’s the digital nervous system empowering SMEs to punch above their weight.” Duvvuri, whose firm recently made waves with a ₹400 crore secondary stake in Urban Company and a $10 million bet on defence tech startup Vayudh, has a knack for spotting scalable moats in overlooked sectors. Dharana’s thesis? In a post-pandemic world where 70% of restaurant revenues now flow through digital channels, platforms like Petpooja are indispensable. They’re not betting on hype; they’re investing in inevitability.
For Petpooja’s co-founder and CEO, Parthiv Patel, this is the dawn of an exhilarating new chapter. “Our partnership with Dharana marks an exciting inflection point,” Patel enthused. “With this capital, we’re doubling down on what we do best: making restaurant management effortless and profitable.” The war chest will fuel three high-octane priorities: supercharging product enhancements, like deeper integrations with emerging payment tech and hyper-localized menu recommendations; accelerating AI-driven automation to slash operational drudgery – think predictive inventory that anticipates a monsoon-induced spice shortage or chatbots that handle customer queries 24/7; and fortifying customer support with on-ground teams in Tier-2 and Tier-3 cities, where 80% of India’s eateries hum away from the metro spotlight.
To grasp the magnitude, consider Petpooja’s evolutionary arc. Born in the entrepreneurial hotbed of Ahmedabad, Gujarat, the company bootstrapped its way through early days, powering humble dhabas and cloud kitchens with basic PoS tools. By 2021, it had notched a $4.5 million Series B led by Aroa Ventures (the family office of OYO’s Ritesh Agarwal), followed by smaller rounds from Gujarat Venture Finance Limited (GVFL) and angels like Mayur Desai. These infusions helped scale to 25,000 outlets, but the real quantum leap came post-2022, as the pandemic accelerated tech adoption. Today, Petpooja boasts over 200 third-party integrations – from Zomato and Paytm to Tally for accounting – serving blue-chip chains like La Pino’z, Hocco Eatery, Jumbo King, Giani’s, Kailash Parbat, TGIF, The Beer Cafe, and Anjappar. Whether it’s a quick-service restaurant (QSR) slinging burgers or a fine-dining spot curating fusion cuisines, Petpooja’s cloud magic ensures zero downtime and data-driven decisions.
But here’s where the story gets even juicier: this funding arrives amid a funding winter thaw for consumer tech. India’s startup ecosystem, battered by global headwinds and regulatory scrutiny, saw venture capital inflows dip 30% in 2024. Yet, bets on resilient B2B SaaS like Petpooja are bucking the trend, with investors chasing “capital-efficient” models that promise quick paths to profitability. Petpooja, with its subscription-based revenue (starting at affordable ₹999/month per outlet), fits the bill perfectly. No flashy consumer apps here – just gritty tools that save restaurateurs 20-30% on costs while boosting order accuracy by 40%. In a sector where 60% of outlets fail within three years due to operational inefficiencies, Petpooja isn’t just a vendor; it’s a survival kit.
Zoom out, and the broader canvas is inspiring. India’s SME-dominated F&B landscape – think the neighborhood dosa joint or the family-run biryani house – contributes 8% to GDP but lags in digitization. Only 25% of restaurants use PoS systems, per industry estimates, leaving a yawning $10 billion opportunity. Petpooja’s Supplier Hub, a B2B marketplace for bulk procurement, aims to onboard 50,000 vendors, streamlining everything from rice sacks to refrigeration units. Imagine a single click ordering spices from Kerala while auto-reconciling invoices – that’s the frictionless future Dharana’s funding unlocks.
Of course, no triumph is without thorns. Competitors like POSist (now part of Curefoods) and LimeTray lurk in the shadows, armed with their own AI arsenals. International expansion, while tantalizing, brings regulatory mazes and cultural tweaks – UAE’s halal compliance or South Africa’s load-shedding woes aren’t for the faint-hearted. And let’s not gloss over the elephant: data privacy in an era of Aadhaar-linked payments demands ironclad safeguards.
Yet, the optimism is palpable. This deal underscores a maturing investor playbook: backing founders who solve real pains with scalable tech, not moonshot gambles. For Parthiv and Apurv Patel – brothers who traded corporate stability for startup sweat – it’s validation after 14 years of grinding. “We started with a simple billing app for our cousin’s restaurant,” Parthiv once shared in an interview. “Today, we’re the OS for an entire industry.” With Dharana’s strategic heft, Petpooja could well mirror Urban Company’s ascent, turning fragmented markets into organized powerhouses.
As India’s knife-and-fork warriors – from bustling Mumbai irani cafes to serene Kerala sadhyas – gear up for a digital feast, this funding isn’t mere news; it’s a catalyst. It promises empowered owners, waste-wary kitchens, and customers savoring faster, smarter service. In the grand tapestry of Startup India, Petpooja’s story weaves resilience, innovation, and that quintessential desi hustle. Watch this space: the restaurant revolution has just been served piping hot.
Follow us on Linkedin and Instagram
Also read: Auxilo Shines with Rs 528 Cr Revenue and Rs 112 Cr PAT in FY25
Last Updated on Monday, September 29, 2025 4:39 pm by Entrepreneur Live Team
About The Author
