Frsh, a start-up which works in the online food ordering and delivery market, has just raised $520K worth seed round  from early stage investors India Quotient and Kae Capital. This comes just hours after Yumist, which is an app-based service in the same segment raised close to $1 Million yesterday.

The start-up, which was founded in January last year, claims to be serving close to 500 orders a day. More so, it is presently delivering in about 1,300 addresses within Gurgaon and delivers as per its predetermined delivery slot in the area. Each delivery slot is less than an hour away from its delivery clusters.

Badal Goel, Co-Founder and an Ex-American Express employee, says,

The funds will be used to increase the production capability by upgrading our kitchen to the one that is at least three times bigger, launch an Android app, revamp the website and digitise our supply chain and delivery process

The entire delivery and cooking process is in-house, with the food being cooked in Frsh’s own kitchens. The company is looking to launch an android app soon, which is quite possibly the only thing holding company’s scalability.

Currently, you can order food through company’s website in four simple steps. You go to delivery location, choose a time for your delivery, select the food from available menu and you’re done. However, Frsh currently serves locations in Gurgaon only.

Frsh currently employs 60 people, ranging from chefs to delivery boys.  With its latest funding, the company may also be looking towards expanding its workforce so as to service more and more areas.

However, it hasn’t always been a smooth sail for start-ups, when it comes to online delivery, specially in India. Much of the headache for any online delivery start-up in India has been to fight up that snarling traffic, resulting in hour-long jams across even the widest of roads. This can be a major issue to deal with, specially for a start-up delivering perishable items such as freshly cooked food. Quality is another aspect, which start-ups have to take utmost care of.

Nevertheless, many start-ups have come up in the online food delivery segment, and have raised good first round investments. Yumist just yesterday raised a $1 Million round, SpoonJoy raised from Flipkart co-founder Sachin Bansal and others, while TapCibo raised funding from Freecharge co-founder Alok Goel.


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