Pune-based fast food chain and online food delivery startup Faasos has raised ₹29.4 crores ($4.2 million) in venture debt from Alteria Capital via a redeemable non-convertible debt funding. Faasos has raised a total of ₹725.2 crores ($103.6 million) that have valued it between ₹1,400 crores to ₹1,540 crores.
Faasos was earlier in reports for looking to raise ₹735 crores in an extended series C round from existing investors Sistema Asia Fund, Sequoia Capital India, RuNet South Asia, Lightbox Ventures II and Lightbox Expansion Fund. Earlier in 2018, the startup was reported to be looking to foray into the overseas market and setting up three kitchens in Dubai till March 2019.
As of October 2018, Faasos has been processing 30,000 orders every day with 175 cloud kitchens across 12 cities in India. Founded by Jaydeep Barman and Kallol Banerjee in 2011, the startup expects to close this fiscal year with ₹300 crores in revenue. The startup has pivoted its business model four times since its inception.
The firm started as a Quick Service Restaurant but changed to a dark kitchen model with no storefronts. Later it evolved as a marketplace and finally turned itself into a multi-brand cloud kitchen service. Faasos now operates multiple brands like Behrouz (famous for Biryani), Kettle & Kegs (tea and snacks) and Oven Story (pizza and bread).
Faasos competes with big players like Dominox, Pizza Hut, McDonald’s, and startups like Box8, Eatlo and Freshmenu among many others. In the online food delivery segments there are heavily funded unicorns like Swiggy, Zomato and Uber Eats. In December 2018, Swiggy raised ₹7,000 crores ($1 billion) in funding from Naspers.