FreshToHome, a fresh fish and meat e-commerce firm, has closed a $104-million Series D funding round led by Amazon Smbhav Venture Fund, breaking away from the ongoing funding winter. The investment comes at a time when the valuations of the technology and start-up industries are under pressure, and companies are laying off workers.
Existing investors in Bengaluru-based FreshToHome, including Iron Pillar, Investcorp, the Investment Corporation of Dubai (the Government of Dubai’s principal investment arm), and Ascent Capital, also participated in this round. E20 Investment Ltd, Mount Judi Ventures, and Dallah Albaraka are among the new investors. JP Morgan was the placement agent to FreshToHome for the fundraise. The firm declined to reveal the company’s valuation following this funding round.
“We are a ‘proficorn’ with operational profitability across the company. Amazon is a great investor and their investment is the validation of the amount of due diligence that they have done,” said Shan Kadavil, chief executive officer and co-founder, FreshToHome, in an interview with Bussines Standard.
“Our focus is on profitability and sustainable value creation. If you look at global macroeconomics, funding has been harder. This is (one of) the largest funding rounds in 6-12 months. Investors are really valuing and prioritising the bottom line as well as topline,” he said, adding that the company had an annual revenue run rate of Rs 1,100 crore.
FreshToHome, which was founded in 2015, now operates in over 160 cities across India and the UAE. It has over 2,000 products that are certified fresh and chemical-free. The funding would allow the company to expand further in these cities. A significant portion of this capital will be used for international expansion in the Middle East, particularly in Saudi Arabia. The funding will also help FreshToHome’s mission of making 100% preservative- and antibiotic-free fish, seafood, and meat available and affordable to customers. Licious, Zappfresh, BigBasket, and Swiggy are among the competitors.
“FreshToHome has done some quality work in creating a robust technology-enabled supply chain and scalable backward integrated capabilities to serve both customers as well as farmers and fishers,” said an Amazon Smbhav Venture Fund spokesperson.
FreshToHome has not disclosed the current valuation. According to sources, the valuation was around $400 million in 2020, when it raised $121 million in a Series C round led by Dubai’s Investment Corporation of Dubai, Investcorp, IronPillar, Ascent Capital, and the US Government’s development finance institution – DFC.
