VRO Hospitality has raised $10 million in a bridge funding round led by Axis Bank and Zerodha co-founder Nikhil Kamath-backed Gruhas. The Bengaluru-based Hospitality chain operates in 42 lounges and bars across the country.

It raised the fund through a combination of selling ownership stakes (equity) and borrowing money (debt). The company plans to use the fund to buy other companies and add more brands to its collection.

The hospitality brand has 10 brands like Mirage, Taki Taki, and Los Cavos, and it wants to grow even more, it said.
The funding round saw the participation of NB Ventres, Cred founder Kunal Shah, and actress Moun Roy, Mint reported.

"This funding round is a crucial milestone for us, fueling our efforts to redefine the hospitality experience through innovation and a steadfast commitment to excellence," stated Dawn Thomas, VRO Hospitality's co-founder and CEO.

"In the past year, we've added 17 restaurants and have 13 more in the pipeline. With ambitious plans ahead, 80% of the funding will be dedicated to acquiring new properties and expanding our footprint. The remaining funds will be allocated to developing infrastructure and technology," he added.

"Since the post-COVID era, the hospitality sector has experienced remarkable growth, and VRO Hospitality has successfully expanded across key markets in India. This successful funding bridge will enable VRO Hospitality to expedite its growth, extend its reach, and further solidify its position as a respected brand and a disruptor in the dining industry," commented Abhijeet Pai, co-founder of Gruhas.

The Hotel Association of India (HAI) has estimated that the hotel industry will contribute one trillion dollars to India's GDP by 2047. 

According to the experts cited in reports, the need for people in the industry will also increase by 25 percent. The demand for travel, aviation, ticket booking, travel guides, and consultants will also increase.