In one of the largest investments in online platforms for fresh produce and meat, Bengaluru-based FreshToHome has bagged $121 million in Series C round. The round was led by Investment Corporation of Dubai, Ascent Capital, U.S. Government’s development finance institution (DFC) and the Allana Group.
With the latest capital infusion, FreshToHome will now expand to more geographies such as Saudi Arabia. In the Middle East, the startup already operated in the UAE. Besides, it will also expand within India and become operational in Kolkata, said the company in a press release.
Earlier this month Entrackr had exclusively reported about FreshToHome’s upcoming funding round. However, our estimation was in the range of $80-100 million. According to our sources, the startup would expand in eight new cities after procuring the fresh round.
The investment will provide FreshToHome much-needed firepower to stay ahead in the competition in this segment against arch-rival Licious and others.
Currently operating in major Indian cities including Delhi, Mumbai, Pune, Bangalore, and Hyderabad, FreshToHome claims to process about 1.5 million orders a month from 420,000 last year. According to the company’s co-founder Shan Kadavil, it has become EBITDA profitable in several cities and currently clocks an annual recurring revenue of $80 million.
It further aims to hit $200 million in revenue by next year.
The startup has established its own supply chain network and transports items through trains and planes for faster delivery. Apart from selling fresh vegetables and meat, FreshToHome also does subscription-based milk delivery with acquisition of Bengaluru-based startup Doodhwala.
Led by Kadavil and Mathew Joseph, FreshToHome has raised around $154 million till date across institutional rounds from the likes of Iron Pillar, Joe Hirao and HongKong based CE Ventures. The company competes with Licious, Zapfresh, BBDaily and Easymeat among a few others.