Holachef raises $5 million in Series B funding

Holachef, the food technology startup, raised $5 million capital funds from its existing investors including Kalaari Capital, SIDBI Venture Capital and India Quotient in a Series B funding round. The funding round valued the startup at INR143 crore. Saurabh Saxena, CEO Holachef, explained the company’s rationale for raising the funds, and said that “The capital would be used for team building and scaling logistic infrastructure to streamline the business. Focus was to get our processes to better serve the Mumbai market and create a more sustainable business model”.

The startup is suffering from a high customer acquisition cost, and is inventing with offline kiosks to reach wider audience and increase penetration. Saxena further added that “The offline kiosk is actually a distribution center but more presentable and customer-facing so people can buy directly from there as well. The offline store will feature the entire menu for customers to choose from and educate them about the app. If this customer-facing center is beneficial for marketing, then we may look at opening new distribution centers which are similar”.

The company reported INR11.3 crore operating revenues in FY16, but posted a loss of INR24.8 crore too. With fresh capital at hand, it is targeting to double its revenues by FY18.