Recently, Startup Holachef Raised Fresh Funding $5 million in a Series B round led by Kalaari Capital. The funding came at a time when most of the food tech companies are struggling for survival. Now, the fresh funding seems to have revived the company for a better run.
Holachef, based in Mumbai appeared when Saurabh Saxena and Anil Gelra teamed up to build a food tech startup two years ago. They came up with Holachef to provide people with the home cooked food.
Holachef has a unique style of serving. The menu has 50 different choices of signature dishes by the company. Holachef serves in 100 more than hundred different pin codes in Powai and some metro cities. As per the company reports, it gets more than a lakh order per month.
The Startup Holachef Raised Fresh Funding $5 Million in a Series B round led by Kalaari Venture Capital. SIDBI Venture Capital and India Quotient were the other participants. Kalaari has also been an earlier investor for the company. The Series B for Holachef concluded in two instalments spanning from April to October and valued Holachef at Rs 143 crore.
Holachef has already validated the reports. Holachef would be using these funds to expand its team and scale up its logistic infrastructure. CEO Saurabh Saxena says, “Focus was to get our processes to better serve the Mumbai market and create a more sustainable business model.”
To beat the high customer acquisition cost, the company is to come up with an offline customer-facing kiosk in Mumbai. Holachef says that the centre would just be a distribution centre with better presentation. Pople would be making direct purchases there. If that seems beneficial, the company can have more such centres in future.
Holachefs operating revenue measured Rs 11.3 crore with a loss of Rs 24.8 crore for the last fiscal year. The operating cost for the company during this period sums up to Rs 35 crore. So the biggest hurdle to the growth of the company has been its high customer acquisition costs. The whole food tech industry is plagued with this issue though.
So now with the freshly raised money and cost cutting strategies, Holachef is ready to make big this time. The company intends to double its revenues by the end of the fiscal year 2018.
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