Pune-based fast food chain and online food delivery company Faasos has raised $4.2 Mn from venture debt fund-focussed Alteria Capital via a secured, redeemable non-convertible debt funding, according to a regulatory document sourced by Paper.vc. This takes the total fund raised by Faasos to $103.6 Mn with its valuation speculated to be between $200 Mn-$220 Mn.
Inc42 had earlier reported that Faasos was looking to raise $100 Mn (INR 735 Cr) even as it was in a extended Series C fund raising round. Existing investors of Faasos include the likes of Sistema Asia Fund, Lightbox Ventures II, Lightbox Expansion Fund, Sequoia Capital India, RuNet South Asia, among others.
Last year, it was reported that Faasos was looking to foray into overseas markets, including setting up of three kitchens in Dubai by the first quarter of 2019. At the time, the startup was receiving almost 30K daily orders.
As of October 2018, Faasos had 175 cloud kitchens across 12 cities in India.
Related Article: Cloud-Kitchen Player Faasos In Talks For $100 Mn Funding
Faasos, which was founded in 2011 by Jaydeep Barman and Kallol Banerjee, expects to close the fiscal year 2018-19 with $42.5 Mn (INR 300 Cr) in net revenue and currently competes with other fast food chains like McDonald’s, Pizza Hut, Dominos, Box8, Eatlo, FreshMenu, and Frsh among others.
Since its launch in 2004, Faasos has pivoted its business model four times. It started as a QSR (quick service restaurant) chain, then switched to a dark kitchen model – which means there were no storefronts – then came the marketplace and finally the multi-brand cloud kitchen model.
In the multi-brand model, Faasos set up a central kitchen and established multiple brands with their own specialities like Behrouz (famous for Biryani), Oven Story, (for Pizzas), and Kettle & Kegs (the tea and snacks bar).
The growth in the on-demand food delivery consumer services sector in India is driven by increasing internet penetration. Some big players in this sector include Swiggy, Zomato, Uber Eats, among others. In December, last year, the sector received another uptick after Swiggy raised $1Bn funding in a Series H round led by South Africa-based Naspers.
Other investments of venture debt firm Alteria Capital include startups such as Portea Medical, Raw Pressery, and USPL.
An email sent to Faasos did not elicit any response till the time of publication.