Bengaluru-based e-commerce startup FreshToHome raised $121 million in Series C funding, in a round led by the Investment Corporation of Dubai, which is the principal investment arm of the Government of Dubai. The company, which sells fresh fish, meat as well as fruits and vegetables in India and UAE, announced that this was the largest ever Series C funding in Indian consumer tech. The company’s growth was spurred on by the pandemic, changing fish and meat purchasing behaviour. FreshToHome offers services in seven Indian cities and in eight locations in the UAE.
Apart from the Investment Corporation of Dubai, Investcorp, Ascent Capital, United States International Development Finance Corporation (DFC) and Allana, as well as Iron Pillar, have invested. Iron Pillar, which invested $19 million in this round, was the lead investor for the company’s Series B round.
This capital, FreshToHome said, will be used to support the expansion of the brand in India and the Middle East. It is targeting $200 million in sales in 2021 “while maintaining current EBITDA profitability in mature cities through deeper supply chain integration on the platform”. FreshToHome is also looking to expand to other GCC markets such as Saudi Arabia.
Co-founder and CEO Shan Kadavil said that due to safety concerns, consumers made the “habit-forming shift” to e-commerce during the pandemic, and that their demand increased manifold.
“FreshToHome stands by the brand’s assurance and creates enormous social and economic impact by enabling sellers to directly source from the fishermen and farmers with its patent-pending AI-powered supply chain technology and aided by a state-of-the-art cold chain. We are just beginning to scratch the surface of a very large market and the current capital raise will help us realize our full potential through rapid expansion in India and the Middle East,” he said.
FreshToHome said it has approximately 15 lakh business-to-consumer orders per month, and that its annualised sales run rate on the platform is approximately Rs 600 crore.
It said it is one of the top five e-grocers in the UAE.
“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,” said Khalifa Al Daboos, Deputy CEO of Investment Corporation of Dubai.
“DFC’s first equity deal with FreshToHome demonstrates the power of our new equity tool to drive development and advance U.S. foreign policy,” said Adam Boehler, of the United States International Development Finance Corporation.
“This project will support economic growth and strengthen agricultural supply chains in a key U.S. partner.”