The investment enables the company to strengthen its fulfilment network as it prepares for a multi-city launch across India.
Fraazo, Mumbai’s largest direct-to-consumer brand in the fresh vegetables and fruits category, has raised US$ 50 million in a fresh round of funding led by WestBridge Capital and existing backers Sixth Sense Ventures, Equanimity Investments, Apar Group, along with leading Indian family offices, including Manish Choksi of Asian Paints. The funding round is a mix of equity and debt. After witnessing 5X growth over the last quarter, Fraazo is gearing up to reach 10 million monthly orders in the next 12-18 months. It aims to create a network of 500+ dark stores across the top 15 cities.
Currently, Fraazo operates the 3rd largest last-mile delivery fleet in Mumbai and Hyderabad, delivering an order every three seconds. The investment enables the company to strengthen its fulfilment network as it prepares for a multi-city launch across India. Founded by Atul Kumar, Vikas Dosala, Sumit Rai, and Aashish Krishnatre, Fraazo boasts of a business model where it owns the integrated supply chain for fresh produce enabling swift movement, ensuring timely deliveries and reducing food wastage.
Speaking on the investment, Atul Kumar, CEO & Co-Founder, Fraazo, commented, “We have witnessed exponential growth organically due to a committed team with a strong bias for execution. This funding will help fuel our ambition to serve 20 million households in the next 18 months. We thank our investors for partnering with us in this journey to becoming an iconic consumer brand.”
Sharing his thoughts, Sandeep Singhal, Co-founder and MD, WestBridge Capital, said, “We are impressed by Fraazo’s exceptional growth in a large market like Mumbai. With the convenience of
quick home delivery and a business model that befits rapid scale-up, we’re excited to partner with Fraazo as they extend their proposition to customers across India.”
Fraazo had earlier raised a total of US$ 15 million in its Series A round led by Sixth Sense Ventures & Equanimity Investments, catapulting the brand to the market leader position in the fresh fruits & vegetables segment.
Nikhil Vora, founder and CEO at Sixth Sense Ventures, stated, “Sixth Sense loves to bet on founders. We believe Fraazo has possibly the best execution teams that one could find in India. The online grocery (fruits & vegetables) segment is waiting to get disrupted, as also consolidated from the millions of offline retailers. Happy to continue to be part of Fraazo’s growth journey and we welcome WestBridge on board as a partner in that endeavour.”
Rajesh Sehgal, Managing Partner at Equanimity Investment, said, “At Equanimity, we are proud to have been part of Fraazo’s journey since it was an idea on a whiteboard to now serving several hundred thousand orders per month. Fraazo presents an innovative business model providing a solution for a large & unorganised market being addressed by a pedigreed team with complementary skill sets. We strongly believe this is just the beginning and the sky seems to be the limit for Fraazo as they keep delivering customer delight across India.”
Source: Business World
