- Faaso’s is currently operational in six Indian cities
- The Series B round will be used to expand team and operations, and improve technology
- Sequoia had earlier led US$8 million funding round in 2011
Faaso’s, an India-focussed online food ordering venture targeting the working population, has grabbed US$20 million in its Series B round of funding, led by Lightbox Ventures, a tech-focussed VC fund launched last year by former Sherpalo Ventures’ India Head Sandeep Murthy.
The round also saw participation from its existing investor Sequoia Capital.
Also Read: foodpanda.in buys Just Eat in India
“This is our first investment in the food technology space,” Prashant Mehta, Partner at Lightbox, told e27. “Faaso’s will use the capital to improve its technology, besides expanding to 15 new cities in India. A portion of the funds will also go towards scaling the team,” he added.
Founded in 2003, Faaso’s is a quick service restaurant chain that enables users (mostly working population) to order “fresh and desi wraps and rolls” via its online platform as well as mobile app. Faaso’s has partnered with around 90 restaurants so far.
The company also enables users to order food via Twitter. According to the firm, almost 50,000 of its orders come from its mobile app users.
At present, Faaso’s has operations in Mumbai, Bangalore, Ahmedabad, Vadodara, Chennai and Pune. It is now looking to launch its services in Kolkata, Gurgaon, Delhi, Chandigarh and Jaipur.
Faaso’s had previously raised US$8 million in Series A funding round in 2011.
“The food technology space is hot and Faaso’s is well-positioned to disrupt the market. The company is growing fast and that’s why we put money into the company,” added Mehta.
Headquartered in Mumbai, Lightbox is a US$100 million fund focussed on early-stage consumer technology businesses. Lightbox’s portfolio companies include GreenDust, ZoomIn, MapmyIndia, Paymate, and FutureBazaar.
In August last year, Lightbox had invested US$8 million in Mumbai-based online digital photo printing and merchandise startup Zoomin Online when it acquired US-based firm Photojojo, which sells photography-related gears.
India has seen a lot of action in the food technology space of late. Last week, foodpanda India acquired its rival Just Eat for an undisclosed amount. Previously, foodpanda had acquired another competitor TastyKhana a few months ago.
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