Pune-based quick service restaurant chain Faaso's Food Services Pvt Ltd has garnered $20 million (just over Rs 120 crore) in a fresh round of funding led by Lightbox Ventures, the firm said on Monday.
The fast food chain, which is backed by Sequoia Capital, will utilise the fund to augment its presence to 15 more cities by March 2016, Jaydeep Barman, co-founder of Faaso's, said.
“We are now trying to up the game even more in food tech. We are coming up with our next gen mobile app in three weeks, the vision for which is to try and replace your fridge (need to store prepared food in fridge),” he added.
Faaso's launched a mobile app last year in March. It claims that 70 per cent of its orders now come through the internet and it processes 50,000 orders a month through its mobile app. The QSR chain targets customers in the age group of 20-35.
At present, it hawks wraps and biryanis from 90 outlets across six cities namely Pune, Mumbai, Bangalore, Chennai, Ahmedabad and Baroda.
Some of the other cities where it intends to expand include Kolkata, Gurgaon, Delhi, Chandigarh and Jaipur.
Sequoia Capital, which had led a $8 million series A funding round in the firm in 2011, has also participated in the latest round. The latest funding comprises equity investment worth $16 million by Lightbox and Sequoia, while another $4 million in debt.
"There aren't that many good eatery options for working people near their offices. So, someone like Faaso's fills the gap," said Prashant Mehta, partner, Lightbox Ventures.
The company is now expecting to clock a revenue of Rs 100 crore for the year ending March 31, 2016, and to break even by FY18 on a targeted revenue of Rs 450 crore.
Barman, a former McKinsey and Co executive, had founded Faaso's in 2004 with his batchmate Kallol Banerjee. Both Barman and Kallol are engineers with MBAs from Indian Institute of Management (IIM) Lucknow and INSEAD.
(Edited by Joby Puthuparampil Johnson)