The year 2019 started on a good note for cloud kitchen model. While fresh funding for Faasos and InnerChef signalled for more capital infusion in this space, Future Group honcho Kishore Biyani is also set to enter the cloud kitchen business.
Another player in this space FreshMenu has turned up the heat with fresh funding of Rs 21 crore led by existing investors Lightspeed Venture Partners. Other investors including Zodius Technology fund and K Ganesh’s Growthstory also participated in the round.
According to a RoC filing with MCA, the fresh capital came earlier this month for the Bengaluru-based startup.
This could be a part of a bigger round that FreshMenu has been looking for a long time. The foodtech platform was also in talks for a potential acquisition with ride-hailing giant Ola.
According to a TechCircle report, the company raised this round at an estimated valuation of $48 million.
Founded in 2014 by Rashmi Daga, FreshMenu is a full-stack foodtech platform that has about 30 kitchens in Bengaluru and another six in Mumbai. Further, it has been planning to add another 40 in Bengaluru, 20-25 in Mumbai and 40-45 in Delhi-NCR.
FreshMenu prepares meals and delivers from its own kitchens. It offers a dynamic menu including mains, sides, salads, and desserts. While the app and website account for 80 per cent of FreshMenu’s sales, the rest comes from Swiggy, Zomato, Uber Eats, and Foodpanda.
The latest round comes after a gap of two years when it raised $17 million in Series B round led by Zodius. Prior to that, it raised $5 million from Lightspeed in 2015.
As far as revenue is concerned, the startup had shown decent growth in FY18. The revenue of the firm grew by 62.7 per cent from Rs 76.04 crore to Rs 123.72 crore in FY18. Due to inability in controlling expenses, the firm incurred a loss of Rs 43.89 crore, a 3.8 per cent increase from FY17.