Freshtohome, an online seller of fresh fish and meat, has raised $121 million in Series C funding led by Investment Corporation of Dubai (ICD) – the principal investment arm of the Government of Dubai, private equity firms Investcorp and Ascent Capital, US Government’s development finance institution – DFC, the Allana Group and other investors.
Iron Pillar, the lead investor from Series B, participated in this round with a significant investment of $19 million, Freshtohome said in a statement. Barclays was an advisor for the transaction.
“COVID-19 transformed the fish and meat purchasing behaviour of consumers dramatically. Due to safety concerns, consumers made the habit-forming shift to e-commerce and we saw online demand for our products going up many folds. We are just beginning to scratch the surface of a very large market and the current capital raise will help us realise our full potential through rapid expansion in India and the Middle East,” said Shan Kadavil, co-founder and CEO of FreshToHome.
The startup has already been operating in the UAE with support from existing large Middle East-based investors such as CE-Ventures – the corporate venture capital platform of Crescent Enterprises, the statement said.
Kadavil founded FreshToHome with Mathew Joseph in 2015. Apart from selling fresh vegetables and meat, the company also does subscription-based milk delivery. FreshToHome claims to process about 1.5 million B2C orders per month and $85 million in annualised sales on the platform. The startup had raised $20 million in Series B funding from Iron Pillar and Joe Hirao, founder at ZIGExn, Japan in August last year.
Some of the early backers of FreshToHome include Mark Pincus – Zynga founder, David Krane – CEO of Google Ventures, Pete Briger – Chairman of Fortress, Abdul Aziz Al-Ghurair – Chairman of Mashreq Bank, Rajan Anandan of Sequoia and other renowned investors.
“DFC’s first equity deal with FreshToHome demonstrates the power of our new equity tool to drive development and advance U.S. foreign policy,” said US Government’s DFC CEO Adam Boehler. “This project will support economic growth and strengthen agricultural supply chains in a key U.S. partner.”