The food delivery sector is expected to be a $50 billion market by 2020 and there is a strong case to build a national mobile and online-first food tech company in India.
FreshMenu, an online food player that delivers fresh meals prepared at its kitchen, has raised $17 million in Series B funding led by Zodius Technology Fund.
The transaction was initiated by Signal Hill India, with participation from existing investor Lightspeed Venture Partners.
Through its full-stack model, the company controls the entire customer experience from online and mobile ordering, to great fresh food preparation and timely delivery.
In a sector that has seen significant shake out in 2015, Freshmenu’s product market fit, stellar growth and margin profile made the Company break-out from the pack.
With this significant Series B funding round, the company will focus to continue its rapid growth trajectory.
Food Vista India Pvt. Ltd, which runs FreshMenu, is expected to use the money raised to expand geographically, strengthen technology and add more cloud kitchens.
The Bengaluru-based FreshMenu was founded in 2014 by IIM Ahmedabad alumni Rashmi Daga, who formerly worked with cab aggregator Ola and online jewellery store Bluestone.
The food delivery sector is expected to be a $50 billion market by 2020 and there is a strong case to build a national mobile and online-first food tech company in India. Freshmenu will use funds from this round to expand operations across the top six cities in India, and further its investments in brand building, tech and people.