Fresh fish and meat e-commerce platform FreshToHome has raised a $ 121 million Series C fundraiser in what the company is touting as the largest Series C financing ever in consumer tech in India.
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Co-founder and CEO Shan Kadavil and some of his other co-founders met while they were working at Zynga. Most of the meat sold in India is fresh rather than frozen and is handled under unsanitary conditions. As such, the Bangalore-based FreshToHome market aims to cut out the middleman by allowing its vendors to source and sell high-quality meat and fish directly from ranchers and fishermen, Kadavil told Crunchbase. News.
“The market is not organized right now and the supply chain is complex,” he said. “From the moment the fish travels from the coast to the city, there are three levels of middleman before it is sold to the consumer. You also can’t keep the meat outside for more than 30 minutes without some kind of cooling, so you have to add preservatives. We are changing that.
The tour was led by Dubai Investment Company, the main investment arm of the government of Dubai, Investcorp, Rise of the capital, American International Development Finance Corporation. (DFC), Allana Group and other investors. In addition, the existing investor Iron pillar, contributed $ 19 million in the round.
The investment gives the company a total of $ 151 million raised since its inception in 2015. This includes a $ 20 million Series B funding round led by Iron Pillar in 2019.
“DFC’s first private equity deal with FreshtoHome demonstrates the power of our new private equity tool to drive development and advance US foreign policy,” said the CEO of DFC. Adam boehler in a written statement. “This project will support economic growth and strengthen agricultural supply chains at a key US partner. “
Kadavil explained that while people believe India is primarily comprised of vegetarian eaters, the size of the consumer market for the fish and meat segment in that country in 2019 was actually $ 94 billion, according to Kadavil. Euromonitor International.
FreshToHome has grown four times in the past year and has achieved approximately $ 80 million in annualized sales while handling 1.5 million business-to-consumer orders per month in most major cities in India and the United Arab Emirates, he added.
The new funding will be used to expand to more Indian cities, the first being Calcutta and Saudi Arabia. Additionally, the company is looking to deepen its fish and chicken supply chain, as well as add mutton. The company has offices across India and also locally in the United Arab Emirates and Dubai.
“COVID has been a tailwind for us,” Kadavil said. “Most of the consumption of fish and meat comes from wet markets, which are crowded, so there has been a big move towards contactless delivery. The meat market is 0.3 percent in India, so there is huge room for growth. We are aiming for $ 200 million in annual recurring revenue.
Drawing: Li-Anne Dias
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