Pune-based food-tech startup, Faasos Food Service has raised Rs 200 crore from Russian internet-focused investment firm ru-Net. With the participation of existing investors including venture capital firms like Sequoia Capital and Lightbox Ventures, the online restaurant is now valued at Rs 870 crore – Rs 1,071 crore.
ru-Net has funded many other start-ups in India like Snapdeal, India’s largest online marketplace; FreeCharge, Snapdeal owned mobile-recharge and payments company and PepperTrap, online grocery delivery store.
Faasos has managed to secure the funds when many of its competitors are either struggling hard or planning to shut their shops as investors are shying away due to its high-cash burn and perceived operational deficiencies.
According to the investors, many food ventures like Eatlo, FreshMenu and Frsh are also struggling with funds and it is expected that their funds might deplete in a few months.
Speaking on the occasion, co-founder of Faasos, Barman said, “Questions have been raised about the (on-demand, food tech) model, but the winners are always those who control the end-to-end supply chain, starting with the food, which is the most important component.”
Faasos operates in 15 cities across India with more than 160 distribution centres.
image courtesy : dnaindia