Bangalore-based FreshMenu, an online first restaurant, has raised Rs 110 crore (~$16.5M) in a round of funding led by Zodius Capital, and participation from existing investor Lightspeed Venture Partners, reports ET. The startup will use the funds for expanding its operations, hiring and brand building. It had previously raised $5 million from Lightspeed.
Founded by Rashmi Daga in 2014, FreshMenu delivers ready to eat meal plates in Bangalore, including mains, sides/salads and desserts. The company owns kitchens and employs delivery boys, unlike competitors including Zomato, Foodpanda, TinyOwl, Swiggy etc., which aggregate eatries. Other startups that sell self-branded food include iTiffin, Box8, Faasos and Frsh.
The food delivery segment has been volatile in recent times with various startups raising funding while others got acquired, shut shop or laid off employees. Last week online food ordering startup Foodpanda laid off 15% off its staff across verticals to become ‘sustainable and profitable’. Competitor company TinyOwl had two layoffs in 2015, which subsequently led to a co-founder being taken hostage.
In October, Zomato laid off around 300 people and shut down its Cashless product in Dubai. In the same month, food ordering startup Dazo shut operations, likewise with SpoonJoy, which was later acquired by Grofers. Eatlo halted operations in December.
Other developments in food ordering:
– In October, we reported that Paytm, which raised an undisclosed amount in fresh funding in September, is entering the hyperlocal services vertical, starting with food ordering, table bookings, cinema tickets and deals in the user’s neighbourhood.
– In June, online food delivery company Holachef raised Rs 20 crore in a round of seed funding led by the venture capital firm Kalaari Capital and existing investor India Quotient, to invest in infrastructure and technology.
– In the same month, Media house and broadcaster NDTV said that it was planning new online ventures in the field of food, auto and gadgets and had signed preliminary, non-binding term sheets with potential investors.
– In May, Mumbai-based Box8 has raised Rs 21 crore in a series A round of funding from Mayfield, for building technology, expanding its team and increasing market penetration.