The funds are for acquisitions, new operations in Kolkata, Chandigarh & Dehradun, and Faasos Daily, a new mobile application for time-slotted food deliveries.
Faasos Food Services, which owns online restaurant Faasos, has raised USD $30 million (INR 200 crore), managing to secure funds at a time when several of its competitors are forced to scale down or shut shop as investors tighten their purse strings.
Russian internet-focused investment firm ru-Net led the financing, which values Faasos at INR 870-1070 crore. Existing investors including venture capital firms Sequoia Capital and Lightbox Ventures participated.
Following the equity-led investment, investors now hold a combined majority stake in the Pune-based food-tech startup. Faasos previously raised USD $20 million in this February in an equity and debt financing round led by Lightbox. ru-Net has been an investor in Snapdeal, while also backing payments company FreeCharge and on-demand grocery delivery startup PepperTap.
The company is targeting revenue of USD$ 20 million for this fiscal year ending in March 2016, and a five-fold jump to USD$ 100 million for the next. “We’re looking at a million orders per month over the next six months, up from our current 350,000 orders per month. Seven months back, we were at about 70,000-80,000 orders per month,” said Jaydeep Barman, co-founder & CEO, Faasos.
“Questions have been raised about the (on-demand, food-tech) model, but the winners are always those who control the end-to-end supply chain, starting with the food, which is the most important component,” said Barman.
Faasos, which is seeking to evolve into a full-fledged food brand, plans to use the money from the latest fundraise for acquisitions and to begin operations in Kolkata, Chandigarh, Dehradun and other cities. The company also wants to use the funds to expand the range of its in-house brands and build new services such as Faasos Daily, a new mobile application for time-slotted food deliveries. 97% of its orders come through its mobile app.
