Bengaluru-based cloud Kitchen and online food delivery startup FreshMenuâ€™s parent Foodvista India is set to receive investment from media conglomerate Bennett, Coleman and Company Ltd (BCCL), which runs newspapers Times of India and Economic Times.
According to a report in VCCircle, BCCL will soon invest Rs 1.65 crore ($255,613) in Foodvista as per filings with the registrar of companies.
The ad-for-equity deal was confirmed by the founder of FreshMenu to VCCircle.
The ROC documents also show that FreshMenu more than doubled its net sales in FY17 to Rs 70.9 crore from Rs 31.7 crore in the same time last year.
However, net loss widened from Rs 33.8 crore last year to Rs 42.3 crore in FY17.
â€śWe have more than doubled our revenues. That is a strong growth number. The losses have just gone up by around Rs 7 crore. It shows that more efficiencies have kicked in for sure,â€ť VCCircle quotes FreshMenu founder Rashmi Daga as saying.
Founded in, FreshMenu operates on a cloud kitchen food delivery model where it prepares meals in its own kitchen and then delivers. It has a presence in Bengaluru, Mumbai and Delhi NCR. It competes with the likes of HolaChef and InnerChef. It previously raised a total of $22 million from investors such as Lightspeed, GrowthStory and Zodius Technology.
The foodtech industry in India has been seeing a lot of traction over the past 1-2 years. After several players experimented and shut down services, there has been some stabilization over the past year with Swiggy, Zomato, Faasos, Freshmenu emerging as some of the top players.
FreshMenu too is looking to double its order base across the three cities and it expecting a 2x revenue growth this fiscal. It also opened its first front-facing kitchen at Bengaluru airport, the first of its offline stores, with an investment of Rs 30 lakh.