FreshToHome eyes up to $50 million raise to scale Middle East business

“The company has already raised a third of the capital from a Middle East-based family office and is in talks to raise the remaining amount over the next couple of weeks,” said one of the people cited above. 

The person added that some of the existing investors may also put capital in this round.

The company is also exploring partnerships with multiple entities in the region. “The Middle East has become their primary focus now as it is one of their most important markets,” the person said.

FreshToHome did not respond to Mint’s email seeking comment. Mint has also reached out to the company for details on the scale of its Middle East operations, including its geographic footprint, revenue contribution, and expansion plans.

Backed by Amazon, Dubai players

This fundraise attempt comes over two years after FreshToHome raised $104 million in February 2023, in a round led by Amazon Smbhav Venture Fund. Other backers include Iron Pillar, Investcorp, Investment Corporation of Dubai, Ascent Capital, E20 Investment Ltd, Mountshan Judi Ventures, and Dallah Albaraka.

At the time, co-founder and CEO Shan Kadavil said the funds would be used to deepen the company’s footprint across Gulf Cooperation Council (GCC) markets and increase its network of offline stores.

While FreshToHome generates a bulk of its revenue from India—serving over 100 cities—its Middle East business has grown significantly over the past few years. It had entered the UAE market in 2019 and now has a presence across several locations in the region, including Abu Dhabi, Ajman, Al Ain, Fujairah, Dubai, Ras Al Khaimah, Sharjah, Umm Al Quwain, as well as in Saudi Arabia.

To date, the startup has raised $286 million across eight funding rounds and is valued at $572 million, according to market intelligence platform Tracxn.

Fish rules the plate

In a 2023 interview with Mint, Kadavil had said that fish and seafood accounted for the largest share of FreshToHome’s sales at 42%, followed by poultry at 38%, and meat. He also pointed to the untapped potential in organized online play within India’s massive unorganized fresh food sector.

“The market size is $50 billion across fish and meat, of which 70% is fish, 20% poultry and the rest is mutton,” he said. 

While India’s wet market remains large and largely offline, Kadavil estimated the size of the organised and online market at only $750 million at the time.

Also read: Pure non-vegetarian: Why ITC is acquiring frozen meats brands Prasuma and Meatigo

AI-led sourcing model

Founded in 2015 by Shan Kadavil and Matthew Joseph, FreshToHome uses patent-pending AI-powered supply chain technology to source directly from farmers and fishermen. Its cold chain setup helps cut out middlemen and ensures delivery within 24–36 hours.

The startup also enables electronic bidding for farmers and fishers through its app, giving them greater control over pricing and quality while reducing leakages in the supply chain.

The pandemic helped FreshToHome scale rapidly as more Indian consumers adopted e-commerce for meat and fish. The company leveraged this demand with its brand promise of “100% Fresh and 0% Chemicals.” Rivals such as Licious and ITC-backed Meatigo also saw a similar surge in demand as customers prioritised quality and safety.

Also read: Licious wants to cross the road. But it risks getting cooked.

FreshToHome also recently jumped on to the quick commerce bandwagon to sell its products in a timeframe of 15-20 mins across select areas in India. The company’s standalone revenue from operations surged to ₹369.6 crore in FY24 from ₹24.9 crore a year earlier. Its losses also more than halved to ₹149.7 crore, Tracxn data showed.