Indian burger chain Burger Singh has issued a witty press statement denying the recent reports on the company raising Rs 47 crore in a fresh round of funding. Denying the reports by startup news platform Entrackr, the company stated that the claims were ‘not true’ and further wrote a humorous clarification.
The report published on July 17 said Burger Singh had secured ₹47.15 crore in a new round of funding, co-led by Negen Value Fund and Nine Rivers Capital, with participation from Rhodium Trust and 19 other investors. However, as notified by Burger Singh in the recently released press statement, “That’s not true. Not yet, at least.”
In what came across as an exclusive report in the startup domain, was later found to be stirring confusion. Keeping that in mind, the company came up with their official communiqué, with a dash of humour and wit.
Explaining the ongoing confusion, the burger chain said, “We’d like to clarify some excitement stirred up by an ‘exclusive’ report… claiming Burger Singh has successfully raised ₹47.15 crore in a fresh funding round.” The release further said, “We’re flattered. Truly. But unfortunately, and quite factually, that’s not true. Not yet, at least.”
According to them, the confusion arose when a Ministry of Corporate Affairs (MCA) filing, mainly an MGT-14 form was misread. Clarifying the same, the fast food enterprise said that this is a simple regulatory step that indicates the possibility of a share offering and not confirmation regarding receiving the funds.
Last week, Entrackr reported that as per regulatory filings accessed by them, via the Registrar of Companies (RoC), the board approved a special resolution to issue 4,994 compulsory cumulative preference shares at an issue price of Rs 94,430 each to raise the funds. “Negen Value Fund and Nine Rivers Capital will contribute Rs 12 crore each, while Rhodium Trust will invest Rs 8.5 crore. Turner Morrison and Thapar Family Trust will pump in with Rs 3.5 crore and Rs 2 crore, respectively,” the report added.
Putting an end to the ongoing confusion stemming from the same report, Burger Singh added in their witty release, “What's been interpreted as a celebratory financial five-wicket haul is, in reality, just a coin toss. The article relies on a MGT-14 filing with the Ministry of Corporate Affairs (MCA), a standard regulatory form that allows us to offer shares to potential investors. It's the corporate equivalent of listing your house on 99 acres, it simply means: we're open for business.”
Further, offering another analogy Burger Singh referred to India’s heartbreaking Lord’s Test loss. It said, “This is like reporting that India had won the match right before Siraj took guard against Shoaib Bashir’s second-last ball… Sometimes the ball trickles back and knocks off the bails. And so do your hopes.”
Taking it ahead, the statement noted, “Legally speaking, a MGT-14 is a pre-offer document, not a receipt. It's an invitation. The investors still have to say yes, transfer the funds, and sign on the dotted line. None of that has happened yet. So any report implying otherwise is premature and frankly, misleading.”
Ending the note on another witty note, the company mentioned, "If listing a share offer means we've raised the money, then by that logic, every bachelor on Shaadi.com is already married.”
“It’s like reviewing a restaurant based solely on the smell wafting from the kitchen. We’ll announce the fundraiser when it’s real,” the statement added.
