SUMMARY
FreshToHome is raising this round at an equity value of $126 Mn
Prior to this, the company had raised $31 Mn till date from investors
FreshToHome counts Das Capital, Al-Nasser Holdings and Iron Pillar as its investors
Bengaluru-based online marketplace for perishable goods FreshToHome is raising a fresh round of capital from Ascent Capital India.
According to ministry of corporate affairs filings accessed by Inc42, FreshToHome Foods Private Limited has been granted the permission from stakeholders to offer and issue one or more tranches 3,16,712 non-cumulative optionally convertible redeemable preference shares (OCRPS) at a face value of INR 10 each and a premium of INR 3534.48 each worth INR 122,25,79,350 ($16.2 Mn) to Ascent Capital Advisors.
The attached valuation report shows that the fair value per equity share is INR 952, with an enterprise value of INR 1,830 Cr ($244 Mn). The company filings showed that the funds are being raised for the growth, expansion, marketing and general corporate activities of the company.
Post-investment, Ascent will hold 4.61% stake in the company, while 95.384% stake is held by FreshToHome’s Singapore parent.
Prior to this, FreshToHome has raised nearly $31 Mn till date. It had raised $20 Mn in Series B funding round from Iron Pillar and Japan-based ife media platform ZIGExn Joe Hirao, in 2019. The company was planning to use this fund to diversify their product offerings in various other fresh and chemical-free food categories, and also expand its presences within India and overseas, especially the UAE.
The same year, FreshToHome had also raised $11 Mn in Series A led by CE Ventures with participation from Das Capital, Kortschak Investments, TTCER Partners, Al-Nasser Holdings, M&S Partners, Al-Nasser Holdings & Abdul Azeez Al-Ghurair from UAE, PLB other Asia and Valley-based Investors.
FreshToHome was founded in 2015 by Shan Kadavil and Mathew Joseph. The company aims to leverage artificial intelligence and the internet of things (IoT) into the cold chain, food safety and sourcing processes. The filings revealed that the company manages to sell nearly 10K tons of produce per year, and has close to 95% qualified cohort retention and doubling every year. The corporate affairs filing also added that FreshToHome has 12 Lakh registered users.
India is currently the world’s largest producer of milk, the second-largest producer of fruits and vegetables and has a substantial production of marine agriculture, meat and poultry products. Overall, the cold chain market for perishable products logistics is projected to reach INR 2,618 Bn by 2024, growing at a CAGR of 14.8% during 2019-2024 in the country.
FreshToHome competes with the likes of ZappFresh, Licious, BigBasket, etc which also cater to the perishable meat industry. There is a $50 Bn opportunity in the fragmented Indian fish market and the $30 Bn market size in poultry.
