Rs 10,000 Cr into restaurants. But why do 80% fail? Here's the Hotshare F&B investment playbook
In this episode of the Prime Venture Partners Podcast, Lavanya, Founder, Hotshare, an F&B investment platform, explains what she looks for before funding a restaurant. The founder of burger brand ‘Beyondburg’, one of Hotshare’s portfolio companies, joins the podcast to share the brand's journey.
India's restaurant industry is experiencing a surge in investment, with approximately Rs 10,000 crore being deployed in the sector in 2025 alone. However, despite the growing interest and demand for food services, 80% of restaurants fail within the first five years of operation. Hotshare, an F&B investment platform, is focusing on identifying and funding businesses that have already proven their ability to survive this high failure rate.
The company invests in restaurant businesses ranging from Rs 50 lakh to Rs 5 crore, aiming to support profitable outlets rather than large chains. Hotshare's founder, Lavanya Jayashankar, emphasizes the importance of evaluating restaurants as income-generating assets rather than relying on future acquisitions or exits. Successful restaurants, like Beyondburg, demonstrate that growth should follow operational readiness and a focus on core products and efficient operations, rather than trying to offer too much too soon.
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