Investcorp invests in FreshToHome

15 Nov 2020

Investcorp today announced that it has invested in FreshToHome, one of the world’s largest fully integrated online brands in fresh fish and meat, as a part of a US $121 million funding round alongside other prominent investors.

Investcorp has been evaluating several potential opportunities which are beneficiaries of the COVID-19 led boost in e-commerce and health and hygiene awareness in India. FreshToHome is a direct beneficiary of shifting demand from fish and meat purchases that have typically been made in the past at wet markets. FreshToHome’s brand promise of “100% Fresh and 0% Chemicals” was a big enabler of its growth during the COVID-19 pandemic.

FreshToHome creates a positive social and economic impact by enabling sellers to directly source from fishermen and farmers through its state-of-the-art and Artificial Intelligence-powered supply chain. Such use of technology reduces food waste for suppliers to less than 2% versus an estimated 15% in traditional unorganized markets.

As estimated by Euromonitor International, the consumer fish and meat segment in India in 2019 was a US $94 billion market. FreshToHome is one of the largest fully integrated e-commerce businesses with approximately 1.5 million B2C orders per month and an US $85 million annualized sales run rate on the platform. FreshToHome enables its marketplace sellers to source and sell high-quality meat and fish directly from livestock farmers and fishermen in most major Indian cities. FreshToHome is also expanding its offering in the GCC region, with a presence in all the emirates of UAE and plans to enter Saudi Arabia in the near term.

Gaurav Sharma, Head of Private Equity at Investcorp India commented: “At Investcorp, we look at companies who redefine the category in which they operate with proven top-line and bottom-line impact. We believe that FreshToHome fits this bill perfectly and is poised to achieve significant scale. We look forward to this partnership and supporting the company in seeking to realise its full potential.”

Shan Kadavil and other co-founders of FreshToHome have a Silicon Valley entrepreneurship background, having in the past been part of leadership teams of companies such as Zynga (NASDAQ: ZNGA). 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

In India, Investcorp invests in mid-market companies in consumption-linked sectors, including consumer tech, healthcare, financial services and technology. In addition to FreshTohome, Investcorp’s recent investments in India include: InCred, ASG, Zolo, Citykart, Intergrow Brands, and NephroPlus. The focus is on targeting first-generation entrepreneurs who aim to scale up businesses with asset-light models and proven unit economics.