Cheelizza Pizza India Limited is carving a unique path in India’s food service sector by focusing on being the country’s first trusted "PURE VEG" brand. As the company evolves, it is addressing a significant gap in the market by providing pure-vegetarian alternatives in a sector predominantly dominated by non-vegetarian offerings. With a diverse menu, strong operational metrics, and a scalable business model, Cheelizza is poised to become a key player in India’s burgeoning food service industry.
A) Company Overview
Cheelizza Pizza India Limited operates with a vision to become a trusted pure-veg food service brand. The company operates on a multi-cuisine platform under the brand "EatVeg," which includes Cheelizza, BiryaniCan, and Indian Combos. The key focus of Cheelizza is to provide an end-to-end 100% vegetarian supply chain, offering maximum variety for vegetarian consumers. This focus on vegetarianism aims to address the common concern about non-vegetarian cross-contamination found in mixed-cuisine competitors.
Key Business Highlights:
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Store Network: As of FY24, Cheelizza operates 18 stores, with strong monthly recurring revenue (MRR) of ₹1.77 crores and over 46,000 orders.
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Digital Presence: With 85,000+ reviews across online platforms, Cheelizza has built a solid digital presence, reflecting high customer satisfaction.
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Operations: The company has its Central Kitchen & SCM Hub at Gala No 1, Kothari Compound, Kherani Road, Sakinaka Andheri East, Mumbai.
B) Industry Overview
The Indian food service market is substantial and continues to grow at a rapid pace, with specialized players like Cheelizza positioned to capture a significant portion of the market.
Key Insights:
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Market Size: The Indian food service market was valued at ₹3274.6 billion and is projected to reach ₹4.24 trillion.
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Organized Market: The organized segment of the market currently stands at ₹1.48 trillion, while the unorganized segment comprises 66.1% of the market share.
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QSR Market: Quick Service Restaurants (QSR) are a key part of the organized food service market, with a significant portion attributed to pizza chains.
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Biryani Market: The biryani market is estimated to be worth ₹30,000–38,000 crore, growing at an 11–12% CAGR, with a significant untapped market for pure-veg biryani.
C) Consumer Trends and Market Opportunity
India’s diverse food culture provides an exciting opportunity for Cheelizza. More than 60% of the population in North and West India is vegetarian, making these regions prime markets for a vegetarian-only restaurant chain. Despite the large vegetarian population, the demand for pure-veg biryani is still underserved, presenting a clear opportunity for Cheelizza's "Biryani Can" brand.
D) Business Model & Revenue Streams
Cheelizza operates as a food-tech platform, controlling the entire customer experience from branding to last-mile delivery. The company’s business model is designed to deliver a seamless experience and high-quality offerings at affordable prices. Their key components include:
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Brand: Multiple pure-veg brands like Cheelizza, BiryaniCan, and Indian Combos.
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Tech: A user-friendly app and website for direct orders, loyalty programs, and promotions.
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Delivery: An in-house fleet for key cities, reducing reliance on third-party aggregators and improving margins.
Revenue Mix (FY24):
E) Financial Performance & Projections
Cheelizza has shown strong growth with promising projections for future revenue and profitability. Here’s a glimpse at its operational metrics and financial outlook:
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Key Metrics (FY24):
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Number of Stores: 18
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Monthly Recurring Revenue: ₹1.77 crore
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Number of Orders: 46,000+
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Average Order Value: ₹360
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Repeat Order Rate: 50%+
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Same Store Sales Growth (SSSG): 15.1%
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Compound Annual Growth Rate (CAGR): 42%
F) Capital Structure & Effective Share Price Note
1. Position as on 31 Dec 2024
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Equity Shares: 11,765 (FV ₹10)
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CCPS (existing): 1,378 (FV ₹10)
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ESOP Pool: 676 options
2. New Allotments (Jan–Feb 2025)
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10 Jan 2025: CCPS valuation report placed fair value at ~₹50,000 per share (used for CCD conversion).
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Later: Company allotted 32 CCPS at ₹37,766 per share (FV ₹10) to new investors.
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14 Feb 2025: 1,006 CCDs converted into CCPS at the earlier valuation (~₹50,000 per CCPS).
3. Bonus Issue (16 June 2025)
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Ratio: 762:1 → every 1 share (Equity/CCPS/ESOP eligible) got 762 bonus shares.
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Total Bonus Shares Issued: 10,78,15,380 equity shares (FV ₹1 each).
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After bonus, all CCPS also stand converted into equity shares of FV ₹1.
4. Post-Bonus Capital Structure (as converted basis)
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Equity Capital (original + CCPS + CCD-converted + bonus):
~10,78,29,328 shares (FV ₹1 each).
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ESOP Pool (adjusted): 676 × 763 = 5,16,788 shares (FV ₹1 each).
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Grand Total (Equity + ESOP on fully diluted basis): ~10.78 crore shares.
5. Investor’s Effective Price
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Case A – CCD conversion valuation basis (~₹50,000 pre-bonus):
Post-bonus effective = ₹50,000 ÷ 763 ≈ ₹65.50 per share.
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Case B – Latest CCPS allotment basis (₹37,766 pre-bonus):
Post-bonus effective = ₹37,766 ÷ 763 ≈ ₹49.50 per share.
6. How Investors View It
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Regulatory/Accounting perspective: the ~₹50,000 valuation is valid, as it was used for CCD conversion.
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Market/Investor perspective: the ₹37,766 allotment is the most recent “actual” issue price, hence considered more reliable.
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Final Benchmark: After bonus, most investors will treat ~₹49–50 per share (post-bonus effective price) as the practical reference.
Summary:
The company’s share capital expanded to 10.78 crore equity shares (FV ₹1) post-bonus. Depending on which benchmark is applied, the effective investor entry price is in the range of ₹49–66 per share. For valuation and trading reference, the latest allotment-adjusted price (~₹50 per share) is what investors will generally adopt.
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