Bengaluru-based food startup FreshMenu has raised ₹21 crores ($2.94 million) in a venture funding round from Lightspeed India Partners, the Indian unit of the US-based venture capital firm Lightspeed Ventures. Existing investors Zodius Technology Fund and serial entrepreneur K Ganesh’s Growthstory also participated in the funding round.
Lightspeed invested ₹11.7 crores ($1.64 million) while Zodius and Growthstory invested ₹9.3 crores ($1.32 million) in the startup. According to filings with the MCA, FreshMenu has issued 22,465 Series B1 convertible participative preference shares to each of the investors for ₹5.86 crores ($821,000) each. The nominal value of a share is ₹100 with a premium of ₹2,490.86 per share.
Founded by Rashmi Daga in 2014, the startup provides a meal kit delivery services across Bengaluru, Mumbai and Delhi NCR. With 35 cloud kitchens, FreshMenu serves 13,000 orders every day with an average order value of ₹325 ($5). That accounts to transactions of ₹42.25 lakh ($65,000) every day.
In 2016, the company raised ₹119 crores ($17 million) series B round from Zodius Capital at a valuation of ₹350 crores ($50 million). Prior to this round, FreshMenu raised ₹150.5 crores ($21.5 million). In October 2018, the startup was reportedly in talks with private equity funds to raise around ₹525 crores ($75 million) as a part of its series C round at a valuation of ₹1,750 crores ($250 million).
In September 2018, data breach tracker HaveIBeenPwned.com (HIBP) revealed about a breach in the systems of FreshMenu in July 2016. The report suggested that personal data including the names, email addresses, phone numbers, home addresses and order histories of customers were leaked. This led to a social media uproar. FreshMenu then clarified that Anand Prakash, India’s best known white hat hacker and AppSecure has worked towards auditing the systems.
According to a report by Netscribes, the online food delivery sector in India is expected to grow by 35-36% till 2020. Startups like Foodpanda, Swiggy, Zomato and UberEats dominate the market. In the cloud kitchen market, companies like InnerChef and Faasos competes with FreshMenu.
Earlier this month, InnerChef raised ₹45.5 crores ($6.5 million) in Series A round. Faasos also raised ₹30 crores from Alteria Capital, Sequoia India, and Lightbox. Last month, online food delivery startup Swiggy raised $1 billion in a fresh round of funding led by South African technology conglomerate Naspers, marking one of the single-largest infusions into an Indian startup.