Faasos Food Services, the Pune-based food delivery startup, has raised $30 million in a funding round led by Russian internet-focused investment firm Ru-Net.
Existing investors Sequoia Capital and Lightbox Ventures also participated in the round.
“That’s right, the deal has happened, and we participated,” said Prashant Mehta, partner with Lightbox and a member of Faasos board, in a chat with DEALSTREETASIA.
Ru-Net was advised by Link Legal India Law Services, while BMR Legal advised Faasos. Themis Associates advised Sequoia and Lightbox. All of the legal advisors are Indian law firms.
Faasos is among the best-funded startups in the sector, in part because of following a business model that focuses on control over food preparation and quality, and delivering within half an hour. It does not offer as many discounts as its competitors like Foodpanda and Tiny Owl, which have discounts for repeat customers leading to higher cash-burn and operational issues.
Faasos’ tech solution enables it to get food delivered from the center closest to the customer, reducing delivery time. On its app, the customer sees only those items that are in stock with the nearest centre. In a recent interview, founder Jaydeep Barman said, the company has full control over raw items and ingredients used in 160 distribution centres in India, and the quality of chefs preparing food for customers in central kitchens.
India’s fast food market is expected to double in size to $1 billion over the next three years, according to a report by Crisil Ltd.