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Thursday, June 20, 2024

FreshToHome may join unicorn club in $100M funding round

In a new funding round, FreshToHome hopes to double its worth to over $1 billion. The D2C meat and seafood startup’s Series D fundraising round is expected to include participation from the Abu Dhabi Investment Office and Investcorp.

FreshToHome, a D2C meat and seafood firm, is pursuing a Series D fundraising round with a post-money valuation of over $1 billion, according to persons familiar with the situation.

According to the sources, the fresh fundraising round might include Abu Dhabi Investment Office (ADIO) and current investors like as private equity firm Investcorp, valuing the Bengaluru-based business at around $1 billion.

FreshToHome will participate in the current round with investors from Dubai, Bahrain, and Saudi Arabia, where the company has aggressively extended its operations in recent years.

According to the sources, the business is trying to raise $100 million to $150 million in a Series D financing. Shan Kadavil, cofounder and CEO of FreshToHome, has been camping in the UAE for the past month, meeting with investors to finalise the deal’s terms.

FreshToHome was contacted by Inc42 for comment on the crowdfunding, but the company declined. FreshToHome recently raised $121 million in a Series C funding round led by the Investment Corporation of Dubai (ICD), the government of Dubai’s principal investment arm; private equity firms Investcorp and Ascent Capital; the Allana Group, the US government’s development finance institution; and other investors.

While the business did not disclose its valuation during the Series C investment, several media sources put it at $350 million to $400 million.

In an interview last year, Investcorp India CEO Gaurav Sharma said the PE company was negotiating with an investment bank on a new investment in FreshToHome, which could push the startup’s worth past $1 billion.

In India, the online meat ordering and delivery market has exploded in recent years. The Covid-19 outbreak boosted the segment’s startups even more.

While FreshToHome hasn’t raised money since 2020, Licious, located in Bengaluru, raised almost $200 million in a Series F fundraising round last year. When Licious raised $52 million in October 2021, it became the first D2C meat business to join the coveted unicorn club.

Another industry competitor, Tiger Global-backed Capital Fresh, raised $50 million in a Series B fundraising round in March this year, valuing the company at $500 million. At the time, the B2B fish and seafood firm stated it was trying to grow to other markets such as the United States and Europe.

FreshToHome promises to provide 1.5 million direct-to-consumer orders every month, with an annualised sales run rate of $85 million.

The firm, which is active in most major Indian cities and the UAE, allows its marketplace merchants to source and sell high-quality meat and fish directly from livestock farmers and fishermen.

Serial entrepreneurs Shan Kadavil and Mathew Joseph co-founded the company in 2015, and early supporters include Zynga founder Mark Pincus, Google Ventures CEO David Krane, Fortress Chairman Pete Briger, Mashreq Bank Chairman Abdul Aziz Al-Ghurair, and Sequoia Capital’s Rajan Anandan. To far, the business has garnered $152 million in investment.

According to statistics received from Tofler, the foodtech startup’s operational revenue nearly doubled to INR 16.9 Cr in FY21 from INR 8.4 Cr in FY20, but its loss extended to INR 105.9 Cr from INR 92.53 Cr in FY20.

According to a research by consultancy firm Redseer, India’s meat business is predicted to generate revenues of $80-$85 billion by 2024 and is set to be disrupted by online companies.

The gross merchandise value of online meat selling platforms has increased by double since the outbreak, and the trend is expected to continue, making the sector one of the most closely monitored in the near future, according to the report.


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