Food-delivery App FreshMenu Has Raised Rs 50 crores From Florintree Advisors


Full stack foodtech platform FreshMenu has raised a new round from Florintree Advisors with a steep cut in its valuation. This would be the first major funding round for the Bengaluru-based company in the past three years.

FreshMenu has 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, its regulatory filings with Registrar of Companies (RoC) show.

Post allotment of these shares, Florintree holds 26.683% of Fresh Menu which offers healthy salads, wraps, sandwiches, biryani along with rice and noodle bowls among others.

As per Fintrackr estimates, the company has raised the new funds at a post money valuation of around Rs 210 crore. This marks a steep haircut in the company’s valuation as compared to Rs 405 crore in the previous round.

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Founded in 2014 by Rashmi Daga, FreshMenu offers a meal kit delivery service from its cloud kitchens located in Bengaluru, Mumbai, Delhi-NCR, Kolkata, among other cities. Currently, it handles over 8,000 orders per day across four cities with an average order volume (AOV) of Rs 350. 

This is the first investment in the foodtech company by private equity firm Florintree Advisors led by Mathew Cyriac. Cyriac was the managing director of Blackstone Group in India and his firm has recently invested in startups including Freight Tiger, Satin, Data Patterns  and Mobikwik.

Apart from the funding, Freshmenu also increased its employee stock options (ESOPs) pool by 149.2% to 3,11,623 ESOP options from 1,25,000 options. According to Fintrackr’s estimates, the new ESOP pool now constitutes 5.28%.

The Covid-19 led disruptions during FY21 had eaten up 52% of FreshMenu’s scale. The company’s revenue from operations dwindled to Rs 50.17 crore in the fiscal year ending March 2021 from Rs 104.57 crore in FY20. Due to shrinkage of scale, FreshMenu’s losses also reduced by 33% to Rs 7.34 crore in FY21 as compared to Rs 11 crore in FY20.

Also, Read This: Cloud Kitchen Startup Curefoods Raises USD 62 million In Funding



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