FreshMenu, a Bangalore-based food-tech startup that operates an online food ordering platform, is reportedly looking to raise $75 million in its Series C round. The funding will be used by the company to fuel its expansion plans.
The capital will help the company to set up more kitchens in markets such as Bengaluru, Delhi-NCR, Gurugram and Mumbai. It also plans to enter new markets, including Pune and Hyderabad.
According to a report from ETTech, the company is in talks with TPG, General Atlantic, Singapore’s Temasek Holdings and domestic PE fund Kedaara Capital, among others, to dilute around 25-30 percent stake.
The report, citing people aware of the development, says that FreshMenu is looking for a valuation of $250 million in its new Series C round. This is a steep rise given that the company was valued at $50 million in its Series B round raised from Lightspeed Venture Partners and others in 2016.
FreshMenu was founded in 2014 by Rashmi Daga, and currently operates about 36 kitchens — 30 in Bengaluru and six in Mumbai. It has plans to add another 40 in Bengaluru, 20-25 in Mumbai and 40-45 in Delhi-NCR. It is aiming to have a total 300 kitchens across India by 2020.
Currently, almost 80 percent of the company’s sales are through its app and website while the remaining 20 percent comes through aggregators such as Swiggy, Zomato, Uber Eats and Foodpanda.
According to a report from RedSeer Management, the Indian food delivery market is expected to touch $2.5 billion by 2021 from $700 million in 2017.