Faasos, a online food delivery portal, has raised $30 million in its recent round of funding, backed by Russian investment firm, ru-Net. In a time where many online food startups are scaling back or shutting operations completely, Faasos has received a massive boost to its operations with this latest round of funding,taking the value of the company to $130-160 million dollars.
The food tech startup scene has been mired in a slump with many companies scaling back their operations by reduction of workforce and trying to improve their operational deficiencies. Zomato has plans to cut less than 10% of their workforce, even further than the 200+ employees already fired. Tinyowl’s fiasco was played out in the media with around 112 employees being let go. Many of the other smaller food-tech startups like Freshmenu are on a clock with no more than a few months left to survive.
Faasos, with a presence in over 16 cities and over 160 distribution centres, has quietly improved their day-to- day operations with orders per day reaching around 1 million combined. The funding for this round from ru-Net, already backing Snapdeal and PepperTap, Sequoia capital and Lightbox ventures will provide for the further expansion of operations in Kolkata, Chandigarh and Dehradun. The equity-based investment will give ru-Net and others a majority stake in the company.
Faasos has plans to further expand its in-house brands and also to introduce new services such as Faasos Daily, a time slotted food delivery service.