FreshToHome secures $104 million funding with Amazon as a leading backer
- ByStartupStory | February 22, 2023
FreshToHome, an Indian startup that offers fresh fish and meat to consumers in South Asia and the Middle East, has gained a new supporter in the form of Amazon. The online retail giant has invested in the startup, boosting its growth potential in the region.
Amazon’s India-focused Smbhav Venture Fund has taken the lead in a $104 million Series D funding round for FreshToHome, an Indian startup based in Bengaluru that specializes in selling fresh fish and meat in the South Asian and Middle Eastern markets. The latest investment round also included backing from the development arm of the U.S. government, the Dubai government, and Iron Pillar. This funding injection will facilitate FreshToHome’s growth and expansion in the region.
FreshToHome has raised over $250 million after securing the largest investment to date from Amazon’s Smbhav Venture Fund, which is worth $250 million. Since its establishment in 2015, FreshToHome has emerged as one of the major players vying for a share of India’s $100 billion fish and meat market, which is still heavily reliant on traditional systems. Despite most Indians being non-vegetarians, the industry is ripe for modernization and innovation.
FreshToHome is disrupting the traditional systems in the Indian fish and meat market by improving the quality of the produce, streamlining sourcing infrastructure, and enhancing the delivery time through its robust supply chain network and stringent processing plants. For instance, a customer who orders fish from Delhi to Dubai on a Monday receives the item on Tuesday, which was procured on the same Monday morning, due to the company’s efficient delivery system.
Although several startups are competing for a slice of the $100 billion Indian meat market, establishing trust with customers remains a significant challenge. In India, the wet market accounts for the majority of all meat and fish sales, enabling customers to inspect each item before purchasing it. According to Shan Kadavil, FreshToHome’s co-founder and CEO, it took the company approximately seven years to develop the competitive advantage it has today.
According to Shan Kadavil, CEO of FreshToHome, the startup currently serves more than 4,000 farmers and fishermen and has millions of customers across 160 cities in India and the UAE. It offers a wide range of over 2,000 certified fresh and chemical-free products. Kadavil also revealed that the company has expanded its presence by more than 100% in the last year.
In the last few years, Amazon has ventured into the grocery and fresh categories in India, investing heavily in logistics infrastructure in the region. However, the company has scaled back its operations in some areas in recent months due to global market conditions.
According to a statement from a spokesperson for the Amazon Smbhav Venture Fund, “Our goal with the $250 million fund is to empower the next generation of visionary founders who are leading innovative, technology-driven companies.”
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