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Interesting deal.
Adyar Ananda Bhavan (A2B), a nearly 50 year old south Indian food chain, is being acquired by Bodhi Tree, which is run by James Murdoch and JioStar vice chairman Uday Shankar.
Few points
- Bodhi Tree is taking majority stake for $180 million, which would peg valuation at $300-350 million (Rs 2,800-3,300 crore) based on back of the envelope math.
- Revenue was up 7% to Rs 1,500 crore, but net profit fell 8% to Rs 36 crore in FY25, as per Tracxn. That would imply a price to sales ration of around 2x.
This seems like a slight discount to listed fast food platforms like Devyani and Jubilant, which trade at 2.2-3x multiples. Interesting as A2B owns the brand, while Jubilant/Devyani run global franchises like Dominos, KFC.
- A2B has a network of 160 outlets in India and 30 overseas including Singapore, US and UK. Plan is to build it further globally, which would mean a push for packaged food biz expansion as well.
- In the past, majority stake deals of South Indian chains by PE firms like Adigas (NSR) and Sagar Ratna (India Equity Partners) have not worked out well, with legal battles with promoters.
Though with a seasoned operator like Uday Shankar becoming the board chair, I am guessing the transition from a promoter to professional management will be smoother.
- Investment also comes at a time when new chains like Benne Dosa and Rameshwaram Cafe are driving investor interest in the space.
Get past the blank first slide
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A new AI feature is an opportunity—not an adoption plan.
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@SSMusicTweet There’s nothing called best asset. What’s key here is to build a diversified portfolio in which gold has a certain %. Don’t lose your sleep worrying on what’s best.
Google’s Guided Learning update puts a useful question in front of every educator:
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Start with the learning goal. Then decide where the teacher and AI each add value.
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People are starting to discover businesses through AI, not just search.
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Zoho’s new Analytics release adds AI agents to the reporting workflow.
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One customer question can become three useful posts:
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Good AI training for teachers starts with teaching—not a list of tools.
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Before choosing an AI tool, choose one real task.
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A lead in Zoho CRM isn’t a follow-up plan.
For every active lead, ask:
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I own two SAAS companies serving almost 3000 businesses and i would NEVER do this. Loom (now @Atlassian) just decides to upgrade accounts because they had an acquisition and need to recoup costs. Our bill went from like $125 to $800/m. It’s the principle. These huge SAAS companies know what they are doing. Only reason I caught it was because i switched credit cards and the payment failed. “We chose to..” lol what a joke