SUMMARY

Typically, FreshToHome delivers orders within an hour, though the speed of delivery is influenced by how close the customer is to the nearest dark store. The startup’s founder, Shan Kadavil, informed Inc42 that the quick delivery service commenced approximately two months ago. Established in 2015, FreshToHome’s Indian subsidiary reduced its standalone net loss by 52.18% year-on-year (YoY) to INR 149.73 crore for the financial year 2023-24, while revenue soared 15 times YoY to reach INR 369.55 crore.

Introduction of Quick Delivery Service

Embracing the quick commerce trend, FreshToHome has launched a delivery service that promises arrival within 10 to 20 minutes in select areas across India. While standard deliveries usually take about 60 minutes, the quick service depends on the consumer’s location relative to the nearest dark store. Shan Kadavil, the founder of FreshToHome, mentioned that the startup started this expedited shipping option roughly two months ago.

Company Overview

Founded in 2015 by entrepreneurs Kadavil and Mathew Joseph, FreshToHome operates in 160 Indian cities and 27 cities in the UAE. The D2C fish and meat brand sells its products through popular e-commerce platforms like Amazon and Flipkart, in addition to quick commerce services such as Zomato-owned Blinkit and Swiggy Instamart. In addition to product sales, the startup charges a platform fee of INR 4 per order in certain cities across the nation.

Funding and Financial Performance

To date, FreshToHome has successfully secured around $377 million in funding. The most recent financing round was a Series D, where $104 million was raised, led by Amazon Sambhav Venture Fund with contributions from E20 Investment, Mount Judi Ventures, and existing investors like Investcorp.

On the financial side, the D2C brand managed to reduce its standalone net loss for its Indian operations by 52.18%, bringing it down to INR 149.73 crore for FY24, compared to INR 313.17 crore in the previous year. The revenue growth was remarkable, with a 15-fold increase, totaling INR 369.55 crore in the fiscal year under review, up from INR 24.91 crore in FY23.

Market Position

FreshToHome is competing with companies such as Zappfresh and Licious within the Indian D2C meat market, which is projected to evolve into a $119.36 million market opportunity by 2030.

Market Context

The launch of FreshToHome’s 10-20 minute delivery service aligns with a broader trend across the country, as multiple brands are adopting the quick commerce model. Established players like Zepto, Swiggy Instamart, and Blinkit are joined by significant entries from Flipkart Minutes, Nykaa, and Myntra. According to reports, the homegrown quick commerce market is anticipated to represent a $9.9 billion opportunity by 2029.