FreshMenu earmarks funds for expansion, scaling sub-brands
By Team Startupcity | Tuesday, 03 May 2022, 12:13 Hrs
Full stack foodtech platform FreshMenu will spend over Rs 20 crore on expansion and scaling sub-brands, having closed a fresh round of funding of $7 million from growth stage venture capital firm Florintree Advisors. Its previous investors include Lightspeed Venture Partners, Innoven Capital and Zodius Capital.
FreshMenu founder and chief executive Rashmi Daga said the platform will expand its cloud kitchen units as well as launch new private labels. Existing ones in its portfolio include Green Cravings, dessert brand Edesia, and Asian cuisine brand Donburi.
“There are large opportunities to be tapped within the private label space; we will scale up with multiple new brands in-house across different cuisines,” she said.
The startup, which saw revenue from operations decline to Rs 50 crore last financial year, down from Rs 104.57 crore in FY20, impacted severely by pandemic-induced disruptions. In its latest round of funding, FreshMenu allotted 100 equity and 14,85,642 series C non convertible preference shares at issue price of 336.95 per share amounting to Rs 50 crore from Florintree, according to regulatory filings with Registrar of Companies (RoC). Florintree holds 26.683% of FreshMenu, after allotment of the shares.
A report by Redseer Management Consulting forecasted the cloud kitchen market to expand to $2 billion by 2024.