About Cheelizza Pizza Unlisted Shares

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:

• Store Network: As of FY24, Cheelizza operates 18 stores, with strong monthly recurring revenue (MRR) of ₹1.77 crores and over 46,000 orders.

• Digital Presence: With 85,000+ reviews across online platforms, Cheelizza has built a solid digital presence, reflecting high customer satisfaction.

• 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:

• Market Size: The Indian food service market was valued at ₹3274.6 billion and is projected to reach ₹4.24 trillion.

• 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.

• QSR Market: Quick Service Restaurants (QSR) are a key part of the organized food service market, with a significant portion attributed to pizza chains.

• 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:

• Brand: Multiple pure-veg brands like Cheelizza, BiryaniCan, and Indian Combos.

• Tech: A user-friendly app and website for direct orders, loyalty programs, and promotions.

• Delivery: An in-house fleet for key cities, reducing reliance on third-party aggregators and improving margins.

Revenue Mix (FY24):

• Aggregator Delivery: 82%

• In-Store Sales: 17%

• Direct Orders (EatVeg): 1%

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:

Key Metrics (FY24):

• Number of Stores: 18

• Monthly Recurring Revenue: ₹1.77 crore

• Number of Orders: 46,000+

• Average Order Value: 360

• Repeat Order Rate: 50%+

• Same Store Sales Growth (SSSG): 15.1%

• Compound Annual Growth Rate (CAGR): 42%

F) Capital Structure & Effective Share Price Note

1. Position as on 31 Dec 2024

• Equity Shares: 11,765 (FV 10)

• CCPS (existing): 1,378 (FV 10)

• ESOP Pool: 676 options

2. New Allotments (Jan-Feb 2025)

• 10 Jan 2025: CCPS valuation report placed fair value at ~50,000 per share (used for CCD conversion).

• Later: Company allotted 32 CCPS at ₹37,766 per share (FV10) to new investors.

• 14 Feb 2025: 1,006 CCDs converted into CCPS at the earlier valuation (~50,000 per CCPS).

3. Bonus Issue (16 June 2025)

• Ratio: 762:1 → every 1 share (Equity/CCPS/ESOP eligible) got 762 bonus shares.

• Total Bonus Shares Issued: 10,78,15,380 equity shares (FV1 each).

• After bonus, all CCPS also stand converted into equity shares of FV ₹1.

4. Post-Bonus Capital Structure (as converted basis)

• Equity Capital (original + CCPS + CCD-converted + bonus):

~10,78,29,328 shares (FV 1 each).

• ESOP Pool (adjusted): 676 × 763 = 5,16,788 shares (FV 1 each).

• Grand Total (Equity + ESOP on fully diluted basis): ~10.78 crore shares.

5. Investor's Effective Price

• Case A - CCD conversion valuation basis (~50,000 pre-bonus):

Post-bonus effective = ₹50,000+763≈ 65.50 per share.

• Case B - Latest CCPS allotment basis (37,766 pre-bonus):

Post-bonus effective = ₹37,766 +763≈ 49.50 per share.

5. Investor's Effective Price

• Case A - CCD conversion valuation basis (~50,000 pre-bonus):

Post-bonus effective = ₹50,000+763≈ 65.50 per share.

• 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

·Regulatory/Accounting perspective: the ~₹50,000 valuation is valid, as it was used for CCD conversion.

• Market/Investor perspective: the ₹37,766 allotment is the most recent "actual" issue price, hence considered more

reliable.

• 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.