Captain Fresh Nets $25 Mn To Ramp Up Distribution Channel In US, European Markets

B2B seafood startup Captain Fresh has raised $25 Mn (around INR 207.5 Cr) in an extended Series C funding round co-led by British International Investment (BII) and Nekkanti Seafoods Group.

With this, Captain Fresh’s total fundraising in Series C extended rounds stands at $45 Mn till date. In September, last year, the company secured $20 Mn from Strategic Business Innovators (SBI), Evolvence Fund, Tiger Global, Prosus, Accel, Matrix Partners India and others.

Earlier, this week, Inc42 was the first to report that Captain Fresh will be raising nearly $7 Mn (INR 58 Cr) from British International Investment. 

The fresh proceeds will be deployed for expanding Captain Fresh’s distribution footprint in the US and Europe, aligning with its objective of becoming the largest multi-species, multi-origin vertically integrated seafood platform. 

Additionally, the company aims to establish best practices in the traditionally conventional seafood industry. The expansion in the distribution network is anticipated to enhance the export of Indian seafood more efficiently and productively, contributing to increased incomes for local fishermen.

“Every dollar we raise now is being deployed to forward integrate the distribution side of the value chain, particularly in the US and Europe. We expect these moves to enrich the monetisation potential for seafood on our platform,” Utham Gowda, founder and CEO of the company said in a statement.

Abhinav Sinha, managing director and head of Technology and Telecoms at BII, said, “By supporting Captain Fresh, we are delighted to be able to reach and support more fishermen with improved economic opportunities, as well as to promote sustainable production and reduce wastage.” 

Founded in 2019 by Gowda, Captain Fresh is a farm-to-retail platform for fish, seafood and sheep. It procures directly from agents and farmers and supplies through B2B and B2B2C channels. However, the startup has reportedly discontinued its B2B operations in most of the cities, while its B2B2C operations are just restricted to a couple of cities in India. 

Captain Fresh has been expanding its global footprint across the US and Europe with a focus on distribution capabilities across these markets. It currently has offices in India, the US, Dubai, Paris, Oslo, Amsterdam and Madrid. 

As part of its EU expansion strategy, the firm recently completed the acquisition of a 40-year-old shrimp cooker and distributor Senecrus. Senecrus is based out of one of Europe’s largest seafood markets, the Rungis market, and counts the likes of Auchan, Carrefour, Metro, and other large retailers as their customers. Captain Fresh aims to bolster its distribution presence in the region through additional acquisitions and joint ventures.

It must be noted that while announcing its $50 Mn Series C fundraise from Prosus Ventures, and Tiger Global in 2022, the startup said it was entering the African and Middle East markets. 

The development comes at a time when the meat delivery is going through a churn. TenderCuts was acquired by Good To Go in a distressed sale last September. Licious, the sector’s only unicorn, recently underwent a restructuring exercise, leading to the layoff of about 80 employees. Despite this, FreshtoHome secured $104 Mn in funding last year.