Box8, a food-technology startup that promises to delivery food at your home in just 38 minutes, has raised $7.5 million (Rs. 50 Crore) in its Series B round of funding. The round was led by IIFL Seed Ventures Fund and Mayfield Fund.
The funds will now be used by the company towards strengthening the supply chain, building superior technology, enhancing product development and expanding into new geographies. Commenting on this funding round, Prashasta Seth, CEO of IIFL AMC, said:
IIFL Seed Venture Fund has successfully invested in NBFC’s, consumer internet and technology companies. This is our first investment in food business and we are excited about it. Since inception, Box8 has taken a full stack approach, where they manage and control all aspects of the chain. From procurement, to preparation, till last mile delivery; this has helped them tremendously to offer a seamless experience and build brand loyalty.
Nikhil Khattau, Partner at Mayfield, said:
They are very focussed on the product and are glued to the consumer need. At the same time, they have been able to scale rapidly by using technology and data effectively. We are very happy to have partnered with them and are confident in their approach.
Box8 was started by two IIT graduates Amit Raj and Anshul Gupta. Currently, it claims to serve 12,000 meals every day to its consumer base through a network of 60 stores across three cities Mumbai, Pune and Bengaluru.
Currently, it manages an operational team of 1,200 plus to operate its full stack approach model. It considers its USP to be preparing and delivering Indian food, from a menu which consists of over 100 dishes in ‘all-in-1 Indian meals’- biryanis, wraps, sandwiches and salads- at affordable prices.
The company initially started out as Poncho in 2011 serving only Mexican dishes in the quick service format (QSR). Later on, it expanded its menu and rebranded itself as Box8 in 2014. Last year, the company had raised $.35 million in Series A round, led by Mayfield Fund. Food-tech market is estimated to be a Rs 50,000 crore industry in India.
According to a Morgan Stanley report, the current online food aggregator business should expect a 134% Y-o-Y growth reaching about $4.4 Billion by 2020. While the Indian startup ecosystem and VCs were investing a lot of money in food-tech last year, but after learning that many startups were unable to make the unit economics work in the tough Indian market, the funding in this segment has slowed down.