Bangalore-based startup for drinks Foom has raised Rs 30 lakh (around $46,000) in seed funding from a Delhi-based investor, a company statement said.
The company would be investing Rs 20 lakh from the funds raised for its subscription-based app ‘Foom App’, the statement added.
Operated by Mangsa Technologies Pvt Ltd, Foom follows a subscription-based model, wherein one can enjoy one free drink every day for 30 days in different participating resto-bars/pubs. The service is currently available in more than 40 resto-bars and pubs in Bengaluru.
“We are planning to raise the next round of funds in the next six months and utilise it to expand our operation to all major cities by the end of 2019,” said Lokesh Bevara, founder and chief executive of the company.
Bevara is a graduate of Stanford University and has previously founded cab booking startup Myprepaidtaxi.com and peer-to-peer shipping startup Sendthrume. Bevara established Foom in early 2017.
Startups in the same space that have raised funds include Fresh Food Concepts Pvt Ltd, which sells cold-pressed juices under the brand Juice Up, secured Rs 13.5 crore ($2 million) in a pre-series A round of funding in December 2016 led by angel investors Siddhartha Gupta and Ashvin Chadha. The startup services its clients through a monthly subscription model, but its fresh juices are also available at over 250 locations including premium modern trade chains, hotels, restaurants, QSRs, cafés and entertainment venues across Delhi NCR.
The company competes with the likes of Mumbai-based counterparts Raw Pressery, Juicifix and JusDivine, and Delhi-based Antidote.
Among them, Raw Pressery in February 2016 raised Rs 30.8 crore ($4.5 million then) in a Series B round of funding from Saama Capital, DSG Consumer Partners and existing investor Sequoia Capital.