Pune-based startup Faasos, a technology-focused quick-service restaurant chain backed by Sequoia Capital is raising $30 million from Russian firm ru-Net. The existing investors also includes Lightbox Ventures from which it raised $20 million (Rs 120 crore) early this year.
The funding will be used towards expansion of operations and acquisitions. The company also plans to expand the range of its in-house brands and launch new services like Faasos Daily, a mobile application for time-slotted food deliveries.
Jaydeep Barman was working with McKinsey in London and Kallol Banerjee with Bosch in Singapore, when they decided to return and start their own business. In 2004, they set up FAASOS, a food-on-demand start-up serving Indian delicacies, in Pune, investing close to Rs 50 lakh—savings and loans from family and friends.
Starting out from Pune, Faaso’s started out slowly but gained in momentum and went on to raise $5 million from Sequoia Capital.
Faaosos is part of a growing tribe of homegrown QSR chains that are trying to replicate the McDonald’s or Domino’s Pizza models with Indian fast food. Apart from Faasos, several others, including Box8, Goli Vada Pav and Hello Curry are in the market to raise fresh funding.
The startup has 53 outlets across Pune(18), Mumbai (32) and recently launched in Bangalore (3). It expects to cross Rs100 crore in revenue by March 2016.
The homegrown QSR space is already seeing some disruption with the entry of younger startups such as Frsh, Yumist, FreshMenu and Holachef, which are building online and mobile first food businesses sans actual outlets.
Hello Curry recently announced its association with online ticketing system for railways IRCTC, to supply rail passengers with “wholesome healthy meal options” during their journey. Frsh.com which is run by run by Gurgaon-based Fingertip Foods Pvt Ltd had raised $1 million as a bridge round. Ratan Tata had invested in Holachef.