FreshToHome raises $104 mn in Series D round; plans IPO by 2025

New Delhi: Startup FreshToHome, which sells fish, meat and poultry products mainly through online platform, has raised USD 104 million (over Rs 861 crore) from Amazon Smbhav Venture Fund and other investors to expand business, including opening up of 100 physical retail stores over the next one year.

Launched in 2015, Bengaluru-based FreshToHome operates in more than 160 cities in India and the UAE and offers more than 2,000 certified fresh and chemical-free products.

"We have raised USD 104 million fund in Series D round," FreshToHome CEO & Co-Founder Shan Kadavil told PTI.

He did not disclose the valuation at which the fund has been raised.

Kadavil said the company has so far raised around USD 250 million. Two years ago, FreshToHome raised USD 121 million in its Series C funding round.

In the Series D round, FreshToHome said that the existing investors, including Iron Pillar, Investcorp, Investment Corporation of Dubai (the principal investment arm of the government of Dubai), Ascent Capital and others, also participated.

New investors joining this round included E20 Investment Ltd, Mount Judi Ventures and Dallah Albaraka.

Asked about use of fund, Kadavil said the company will go deeper into the 160 cities in India where it is currently present and will also expand its retail stores to 130 from 30 over the next 12 months.

The company will also look at expanding into more countries, including Saudi Arabia.

At present, he said, the company has an annualised revenue of around Rs 1,100 crore, of which 85 per cent are from India.

FreshToHome had an annualised turnover of around Rs 700 crore at the end of the 2021 calendar year.

"We are now a 'Proficorn' with operational profitability across the company. As we strive to offer more value to our farmers and fishers, customers, employees and investors, our focus is on profitability and sustainable value creation," Kadavil said.

In volume terms, the company sells around 25,000 tonnes annually.

Kadavil also said the company has plans to launch its Initial Public Offer (IPO) by 2025-end.

The current funding will help in achieving its objective to make 100 per cent preservative and antibiotic-residue free fish, seafood, and meat accessible and affordable to millions of meat lovers.

Amazon Smbhav Venture Fund spokesperson stated that the FreshToHome management team has created a robust technology enabled supply chain and scalable backward integrated capabilities to serve both customers as well as farmers and fishers.

Kadavil highlighted that its core strength lies in its technology-enabled platform, Commodities Exchange, which empowers over 4,000 fishermen and farmers to electronically auction their produce for sale on its website.

This process eliminates middlemen and ensures that the customers get the best products within 24-36 hours of sourcing, he added.