A Channel News Asia report said a Temasek spokesman has confirmed the investment but declined to provide details such as the value of the stake.
According to media reports, Temasek would buy an existing Rs 1 billion stake in Devyani from ICICI Venture, the private equity arm of private sector ICICI Bank.
Devyani International operates more than 300 food and beverage outlets in India, Nepal and Nigeria.
Its businesses include KFC, Pizza Hut, Costa Coffee besides managing brands including Vaango and Swensen's.