Over 21 Crores Raised By Freshmenu In Fresh Funding
Freshmenu (the delivery and online restaurant service of Bangalore) has raised around 21 crore from a funding round initiated by Lightspeed Venture Partners. Other investors including K. Ganesh’s fund GrowthStory and Zodius Technology Fund also participated earlier this month on January 2019. Around Rs 11 crore of the total capital raised was infused by LightSpeed Ventures (as per reports by RoC or the Registrar of Companies). It is still unclear whether the funding round was a bridge round or a larger funding round.
According to the reports from Techcircle, the company has raised this funding at an estimated valuation of Rs 342.50 crore. Previously, the company had managed to raise an amount of Rs 110 Crore at a valuation of Rs 290 crore in January 2016.
Over Rs 1.64 crore was funded by Lightspeed. The rest was invested by Growthstory and Zodius Technology.
FreshMenu has issued 22,465 Series B1, compulsorily convertible participative preference shares to each of the investors for around Rs 5.86 crore each as per the reports from a Ministry of Corporate Affairs.
In 2016, when the company raised its last round from Zodius Capital of Rs 120 crore, it was valued at Rs 355 crore. After this, the company has raised around Rs 149 crore from its investors.
The company has grown to 27 kitchens in the last three years with 4 in Delhi, 5 in Mumbai and 18 in Bengaluru. FreshMenu receives 12000 orders daily and handles it with over 700 delivery agents and 550 staffs.
The company has been facing some difficulties due to the management level exits (the chief marketing officer (Aparna Mahesh),chief product officer (Ramesh May), director of new initiatives (Sagar Bhalotia), the human resources head (Anita Menon) and the chief business and technology officer (Pradeep Desai)). Some speculated that the Mukesh Bansal’s Cure.Fit was going to acquire the company to enhance its food service firm, Eat.Fit. According to some reports, the company was facing difficulties in raising more capital. This fresh funding is going to change all of that speculation. Moreover, in 2018, HIBP or HaveIBeenPwned exposed a data breach on the company’s online food delivery platform which revealed sensitive customer information such as home addresses and customer names. The company has since clarified that the breach has been mitigated with the help of India’s best-known white hat hacker, Anand Prakash and AppSecure.
In India, the online food delivery service is expected to grow by 34-36% by 2020 (as per 2017 report from Netscribes). Other dominating players in the market include Swiggy, Zomato and FoodPanda. Led by Naspers, last year Swiggy raised Rs 7107 crore in funding which was one of the largest single infusions in an Indian startup. Zomato isn’t far behind with reports stating that it is planning on a similar funding amount from Chinese Ant Financial.
The operating revenue of the FreshMenu rose to Rs 122.3 crore from Rs 70.9 crore (an increase of 72%) from 2017 to 2018. The net loss also increased from Rs 42.3 crore to Rs 43.8 crore. For now, the company is focusing on providing quality meals to its existing customers while keeping its hopes high for fresh funding to cater to its growing customer base.