Sequoia, Lightbox lead $16m funding in Indian food delivery startup Faasos

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Faasos, the Pune-based on-demand food delivery startup, has raised Rs 110.66 crore ($16 million) in a fresh round of funding led by existing investors Sequoia Capital and Lightbox Ventures, according to filings available with paper.vc.

While Sequoia has invested through Sequoia Capital India Trust and SCI Investments VI fund, Lightbox Ventures has invested in the startup through its Lightbox Ventures II and Lightbox Expansion Fund. UAE-based private equity fund Evolvence has participated in the funding through its India fund.

Faasos parent, Rebel Foods Pvt. Ltd, has issued a total of 2,388 Series D1 compulsory convertible cumulative preference shares (CCCPS) of face value Rs 1,000 each as part of the financing round. While Sequoia has subscribed to 1,514 CCCPS, Ligthbox has been allotted 720 CCCPS.

Earlier this year, the startup had also raised Rs 30 crore ($4.2 million) in debt funding from venture debt firm Alteria Capital through the issue of non-convertible debentures.

According to Crunchbase, Faasos has raised a total of $103.7 million across eight funding rounds till date.

Faasos is looking to raise a total of $150 million in fresh funding at a valuation of $350-400 million for domestic and overseas expansion, Mint reported in January. It has appointed Bank of America Merrill Lynch to advise on the fundraise and seek new investors. The report also said that investment giants including Japan’s SoftBank and Singapore’s Temasek Holdings have shown interest in the company.

Last month, The Economic Times also reported that marquee investors such as Multiples Alternative Asset Management, Temasek, Goldman Sachs, Falcon Edge and Canadian Pension Plan Investment Board are eyeing a share in Faasos.

Faasos rebranded its holding company to Rebel Foods in October last year, as Rebel owns and operates multiple brands, including biryani-maker Behrouz and pizza-maker Oven Story, among others. It competes with firms such as Lightspeed-backed Freshmenu.

The bigger players in the country’s food delivery space include Swiggy and Zomato.

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