Faasos Food Services, which owns restaurant chain Faasos, has raised $30 million in funding round led by Russian investment firm ru-Net at a valuation of $130 million-$160 million. Existing investors including Sequoia Capital and Lightbox Ventures have also participated in the round.
The equity-led investment has allowed the investors to hold a combined majority stake in the Pune-based food-tech startup, reports ET.
The fresh capital would be used for acquisitions and beginning operations in new cities like Kolkata, Chandigarh, Dehradun etc. Besides, it would also be channelized towards launching new services like Faasos Daly – a new mobile app for time-slotted food deliveries. The company operates in a hybrid model, where orders placed through its app are fulfilled through the nearest physical outlet
Faasos had raised $20 million in February in an equity and debt financing round led by Lightbox.
Founded in 2004 by Jaydeep Barman and Kallol Banerjee, Faasos, initiated the trend of receiving orders via tweets, which disrupted the traditional process of placing orders and getting them delivered. It is the only vertically integrated food business in India, and fulfills all the three stages of a “food on demand” business-ordering, distribution and order fulfillment.
The company is currently operational in 15 cities across India including Delhi-NCR, Pune, Mumbai, Bangalore, Ahemdabad, Chennai and Vadodara among others with more than 160 distribution centers.
This news has come as a pleasant surprise to the food startup ecosystem which has been witnessing quite a hard time in raising funds, a factor that is forcing several companies to scale down their operations.