Bengaluru-based meat and seafood delivery startup FreshToHome is set to raise ₹75 crore (around $8.5 million) through a debt funding round, as it looks to shore up working capital and support its expanding operations. The capital will be mobilised from Trifecta Venture, marking another strategic financing move for the company amid a cautious funding environment.
The development comes at a time when consumer internet startups are increasingly turning to debt to fund near-term needs without diluting equity.
Credits: Medial
Board Approves Issuance of Non-Convertible Debentures
According to regulatory filings accessed from the Registrar of Companies (RoC), FreshToHome’s board has approved the issuance of 750 non-convertible debentures (NCDs) to Trifecta Venture. Each debenture carries a face value of ₹10 lakh, taking the total size of the debt raise to ₹75 crore.
The filings indicate that the proceeds from the fundraise will be primarily deployed towards working capital requirements, with a portion also earmarked for general corporate purposes. This structure gives the company additional financial flexibility as it continues to scale its supply chain and delivery network.
Focus on Supporting Day-to-Day Operations
FreshToHome’s decision to opt for debt rather than fresh equity signals a clear intent to meet immediate operational needs while preserving existing shareholding. For companies operating in the fresh food and quick commerce segments, working capital is a constant pressure point.
Managing inventory, cold-chain logistics, processing centres, and last-mile delivery requires continuous cash flow, especially in a category where products are highly perishable and time-sensitive. The latest funding is expected to help the company maintain smooth operations across its sourcing-to-delivery pipeline.
Building Scale Across India and the UAE
Founded in 2015 by Shan Kadavil and Matthew Joseph, FreshToHome has emerged as a leading player in the organised online meat and seafood market. The company currently operates in around 160 cities across India and has also built a strong presence in key markets in the United Arab Emirates.
Over the years, FreshToHome has focused on building an integrated supply chain, working directly with farmers and fishers to ensure quality control and freshness. Its expanding footprint highlights growing consumer demand for reliable, branded alternatives in a sector that has traditionally been dominated by unorganised local players.
Foray Into Quick Commerce
In February last year, FreshToHome entered the quick commerce segment, offering deliveries within 10 to 15 minutes in select markets. The move aligned the company with broader industry trends as consumers increasingly expect faster fulfilment, even for fresh food categories.
While quick commerce demands high operational efficiency and tighter unit economics, it also opens up opportunities for higher order frequency and stronger customer retention. FreshToHome’s expansion into this space underscores its ambition to stay competitive in an evolving consumer landscape.
Strong Equity Backing From Global Investors
Despite the current debt raise, FreshToHome remains well-capitalised on the equity front. According to startup data intelligence platform TheKredible, the company has raised over $320 million in equity funding since inception.
Its most recent equity round was a $104 million Series D, led by the Amazon Smbhav Venture Fund, with participation from E20 Investment Ltd, Mount Judi Ventures, and Dallah Albaraka. The round strengthened the company’s balance sheet and supported its expansion across markets and categories.
Revenue Growth and Improving Cost Discipline
Financial disclosures show that FreshToHome continues to grow its topline while working to rein in losses. The company reported a 14% year-on-year increase in operating revenue, which rose to ₹421.33 crore in FY25 from ₹369.55 crore in FY24.
At the same time, net losses narrowed slightly by 2.3%, declining to ₹146.32 crore in FY25 from ₹149.73 crore a year earlier. The improvement points to tighter cost controls even as the company continued to invest in growth initiatives.
![Funding Alert] FreshToHome Bags $104 mn in Series D Funding - Indian Retailer](https://indian-retailer.s3.ap-south-1.amazonaws.com/s3fs-public/2023-02/Shan%20Kadavil%2C%20CEO%20%26%20Co-founder%2C%20FreshToHome.jpg)
Credits: Indian Retailer
Balancing Expansion With Financial Prudence
The planned ₹75 crore debt infusion reflects FreshToHome’s effort to balance growth ambitions with financial discipline. With a widening footprint, a push into quick commerce, and steady revenue momentum, access to non-dilutive capital is expected to help the company manage short-term requirements while staying focused on long-term value creation.
As FreshToHome strengthens its operations across India and overseas markets, the latest funding move highlights its emphasis on operational stability, efficiency, and sustainable scale—without altering its ownership structure.
