Pune-based online food delivery startup Faasos has raised funding of $6.4 million in an extended Series C round of funding as per the documents reported with the Registrar of Companies. The round was led by Lightbox Ventures II, Lightbox Expansion Fund and Sequoia Capital India. Along with them, RuNet South Asia and RB Investments also participated in the round.
Faasos was founded in 2004 by Jaydeep Barman and Kallol Banerjee and was claimed to be the first company to take orders via tweets as part of a campaign. Since its launch, the company has changed its business model nearly four times. Initially it was brought up in opertaion as QSR (Quick service restaurants) chain, then they shifted to a dark kitchen model which means there were no storefronts, then came the marketplace and at present they are operating as multi-brand cloud kitchen model.
In current model, they have set up a central kitchen and establishes multiple brands with their own specialities. For example, at present the app showcases menu from in-house brands like Behrouz (famous for Biryani), Oven Story (for Pizzas), and Kettle & Eggs (the tea and snacks bar). The aim of the company is to offer variety of food products at a affordable price, and as the delivery is also inhouse. In this model, Faasos is expected to get 100% margin.
In the previous FY which ended in March, the company faced the loss of $17.2 million (Rs 111.1 crore) which was approximately four time compared to $3.78 million (Rs 24.4 crore) in the previous year. The company claims that their net sales rose to almost 65% comparing to previous year.
As it was reported in November 2016, the company served around 15K customers every day. The customer base of mobile accounts was of 85% whereas web was of 15%. Even in web orders, 50% of the orders were from mobile devices.
The company is in competitio with other QSR chains giants such as McDonald’s, Pizza Hut, Dominos, Box8, Eatlo, FreshMenu, and Frsh. In addition to that, Zomato and Swiggy have recently entered in the cloud kitchen space. Along with that, with UberEATS and Google Areo also are looking to gain the Indian consumer for the same domain. It was also reported that Faasos is in talks with Google Aero for delivery the food in the city of Pune.