Fraazo, a direct-to-consumer (D2C) brand in the fresh vegetables and fruits category, has raised $50 million in a funding round led by WestBridge Capital. Existing investors Sixth Sense Ventures, Equanimity Investments, Apar Group participated in the fundraising, as did some family offices including Manish Choksi of Asian Paints.
The fresh foods category has undergone significant changes in the last couple of years, with established players such as Grofers and BigBasket raising the stakes and challengers such as Fraazo fighting for a share of the pie.
“We believe it has the potential to be a $300-$400 billion category and it is a three-to-four player market with room for everyone to grow. The current funding round is a mix of equity and debt and gives the firm a runway of another 12-18 months. We plan to enter newer geographies using this capital,” Atul Kumar, cofounder and chief executive of Fraazo, told ET.
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The new funding round comes two months after the company raised $15 million in its Series A round, led by Sixth Sense Ventures. “We’ve grown almost six times in terms of the number of orders in the last six months. We currently serve around half-a-million orders a month,” Kumar said, adding that in the next 12-18 months, the company expects to reach 10 million monthly orders.
“Fraazo plans to enter newer categories including dairy products such as paneer, curd, flavoured milk, as well as the ready-to-cook segment”, he added.
Founded in 2019 by Atul Kumar, Vikas Dosala, Sumit Rai, and Aashish Krishnatre, Fraazo owns the integrated supply chain for fresh produce, enabling swift movement, ensuring timely deliveries and reducing food wastage. Fraazo aims to create a network of more than 500 dark stores across the top 15 cities. Currently, it operates in Mumbai and Hyderabad. The company started off by delivering orders within 90 minutes, that has now come down to 15-30 minutes. The company, like many of its peers, sources products directly from farmers.
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