FreshToHome raises $121 mn from global investors in Series C round

Funding touted as largest in India's consumer tech segment; led by Investment Corporation of Dubai

Online fish and meat platform FreshToHome has raised $121 million in Series C funding. The funding, being called the largest round in the consumer tech segment in India, was led by Investment Corporation of Dubai (ICD), the principal investment arm of the government of Dubai, along with Investcorp, Ascent Capital, US government’s development finance institution — DFC, the Allana Group and other investors. Iron Pillar, the lead investor from Series B participated in this round with an investment of $19 million.

Barclays was an advisor for the transaction. 

Prior  to this round, the company had raised $31 million. While the company declined to comment on the valuation, reports pegged it at $400 million.

The company, which is currently present in around 33 cities and towns, would utilise the funds for expansion, starting with Kolkata and going into smaller towns such as Coimbatore, Selum, and Jaipur. “We will also be expanding to Saudi Arabia. We are already in the UAE for the past one year and are one of the top five e-grocers in the region,” said Shan Kadavil, co-founder and CEO of FreshToHome.

About 10 per cent of the company’s total revenue is generated from international markets. The company would also be expanding its offline presence with 100 stores in the next 12 months from the current 20 units.

FreshToHome has seen a 2.5x growth since the lockdown. “Safety and other aspects such as chemical-free and antibiotic-free assurance that we give is a big enabler in how people move from wet markets to us. Social distancing is hard to follow in wet markets and the hygiene and quality that we give is much more superior,” explained Kadavil.

According to Euromonitor International, the consumer market size of fish and meat segment in India in 2019 was $94 billion. Some of the top online players vying for a slice of this market are FreshToHome, Licious, and Nandus. 

FreshToHome claims to fulfil 1.5 million B2C orders per month and Rs 600 crore annualised sales run rate on the platform. It enables its marketplace sellers to source and sell high-quality meat and fish directly from livestock farmers and fishermen in most major Indian cities. “We want to be the largest destination for fishermen and farmers to be able to sell their produce with higher price than what they would get in the local market,” said Kadavil, a serial entrepreneur who is also behind some of the most successful online games such as Farmville. 

“FreshToHome is a leader in leveraging AI-based technology and business innovation to bring a superior value proposition to customers and suppliers in a large and important market. At ICD, we seek to partner with companies like FreshToHome that are able to break new ground for the greater good while also enjoying a large shareholder value creation opportunity,” said Khalifa Al Daboos, Deputy CEO of Investment Corporation of Dubai, one of the investors in the company.