The Indian Wire » Startups » Food delivery startup FreshMenu in talks with investors to raise ₹555 crores
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Food delivery startup FreshMenu in talks with investors to raise ₹555 crores

Bengaluru-based food delivery startup FreshMenu is in early talks with private equity funds to raise around ₹555 crores ($75 million) in series C round, with an estimated valuation of ₹1,850 crores ($250 million).

Out of the total investment of $75 million, $50 million is expected to come as primary capital, while the remaining is expected to come from the secondary deal, as existing investors look to make a partial exit.

The investors that are reportedly in talks with the foodtech startup to acquire a 25-30% stake are TPG, General Atlantic, Singapore-based Temasek Holdings, and Mumbai-based PE fund Kedaara Capital, according to the people aware of the development. Kotak Mahindra Capital has been running the process.

The funds raised are expected to be used for setting up more kitchens in the existing markets like Bengaluru, Gurugram, Delhi NCR, and Mumbai, along with expanding to new markets including Pune and Hyderabad.

FreshMenu was founded by IIM Ahmedabad alumni Rashmi Daga in 2014. The startup provides a technology platform to let customers order food from an extensive menu and delivers the food right at their doorsteps.

The food delivery startup is operational across Bengaluru, New Delhi, Gurugram, and Mumbai. It has around 30 kitchens in Bengaluru and six in Mumbai, with plans of adding another 40 in Bengaluru, 20-25 in Delhi NCR, and 40-45 in Mumbai. FrehMenu is looking to expand the number of kitchens to 300 across the country by 2020.

While FreshMenu’s monthly orders are estimated to be a modest 500,000. The startup fulfils 80% of its orders through its own website and app, while, the remaining 20% comes from other food delivery platforms like Zomato, Swiggy, UberEATS, and Foodpanda.

FreshMenu last raised $16.5 million in a series B funding round led by Zodius Capital, along with participation from Lightspeed Venture Partners in January 2016.

There has been a lot of buzz around the foodtech sector in India, with two Indian food delivery giants Zomato and Swiggy, with monthly orders at around 21 million and 20 million, respectively, compete for market leadership.

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