Per the filings made with the Registrar of Companies, Pune-based online food delivery startup Faasos has raised USD 6.4 Mn funding in an extended Series C round of funding. The investment is led by Lightbox Ventures II, Lightbox Expansion Fund, Sequoia Capital India, RuNet South Asia, and RB Investments.
The first tranche of Series C was raised back in December 2015, amounting to USD 30 Mn. So far, the company has raised a total of USD 64.6 Mn in six rounds of funding. The company was founded in 2004 by Jaydeep Barman and Kallol Banerjee.
Faasos has modified its business model four times since it was launched. While it all started as a QSR chain, they then switched to a dark kitchen model(no storefronts), then they became a marketplace and finally the multi-brand cloud kitchen they are today. In this model, Faasos set up a central kitchen and establishes multiple brands with their own specialties. The aim is to offer variety of food products at a premium price, and as the delivery is also inhouse, Faasos gets the 100% margin.
As of November 2016, the company claims to have served around 15,000 customers every day. Out of this, mobile accounts for 85% whereas web is 15%. Even in web orders, 50% of the volume comes from mobile devices. Faasos currently competes with other QSR chains like McDonald’s, Pizza Hut, Dominos, Box8, Eatlo, FreshMenu, and Frsh. Recently, Zomato and Swiggy have also entered in the cloud kitchen space. Plus, with UberEATS and Google Areo (which is testing the waters in both the hyperlocal and food delivery space) also looking to entice the Indian consumer.