The Bangalore-based company, FreshToHome (1), talks to its existing investor, Ascent Capital, and other potential investors from the Middle East, as per the sources. Amid the surge in demand, the startup is aiming to secure about 80 to 100 million USD. The development came after the grocery and fresh products have observed a massive spike in online purchasing and demand for these services.
Notably, the estimates say that online grocery and fresh product services have observed 2x more growth during the COVID-19 resultant lockdown. The existing investors of the FreshToHome are also likely to participate in the upcoming funding round. It includes Al-Nasser Holdings, Das Capital, and Iron Pillar.
The fresh tranche would help the firm compete against its meat-selling peers such as Licious, and other online grocery selling platforms such as Big Basket. Notably, Big Basket is also in talks with Temasek to secure around 100 million USD.
FreshToHome to Expand Over New Cities Across India After Securing the Fresh Fundings
There have been no comments from Shan Kadavil, CEO of FreshToHome, nor Ascent Capital regarding the recent development. Founded in 2015, the startup sells fresh vegetables, such as chicken and fish, in Mumbai, Pune, and Bangalore, Delhi, and Hyderabad. Notably, the firm also has a presence in the UAE.
According to the reports, the startup will expand to 8 to 9 cities after bagging the fresh fundings.
FreshToHome last secured funds in 2019, where it secured 20 million USD in the funding round led by Iron Pillar. It raised the funding to expand its presence across the country. The Development Finance Corporation, based in the US, also committed 20 million USD funding to the company in June 2020. The funding came to the company’s plan to support over 1,500 farmers and fishers in India.
Apart from selling fresh produce, the startup also forayed in milk delivery in 2019. It also acquired Doodhwala, a milk delivery startup, to boost its vertical.
FreshToHome was getting approximately 14K daily orders back in 2019. However, due to the pandemic, users are moving online. Consequently, the number of orders on the platform also rose. At present, they are observing over 40 to 50 Crore INR in monthly sales, claim the sources.