On-Demand food delivery startup Box8 has raised $1 Million (Rs 7 Crore) of Venture Debt funding from Trifecta Capital. In Addition, the startup has also secured $7.5 Million (Rs 50 Crore) of Series B funding from IIFL Seed Ventures Fund & Mayfield.
The Mumbai-Based startup was started in 2012 by two IIT graduates Amit Raj and Anshul Gupta. BOX8 is a full stack online food delivery platform which prepares and delivers meals to customers in Mumbai, Pune, and Bangalore. The startup claims to serve around 14,000 meals every day through a network of over 65 stores across the 3 cities.
Talking about the Venture Debt, Amit Raj, Co-Founder, Box8 said: “Venture debt is an excellent proposition; since it provides access to debt where traditional bank lending doesn’t participate, and does that without diluting equity, unlike venture capital. This will help us maintain a balance in our financial structure & at the same time, keep growing at a rapid pace.”
The fresh funds will be used to venture into existing three markets and enhance customer experience. It also intends to expand to new geographies and looking to expansion cities like Delhi, Hyderabad, Chennai and other major cities.
Commenting on the investment Rahul Khanna, co-founder, Trifecta Capital said, “We have been monitoring the online food delivery sector for almost two years. More than 150 startups were funded in this space and, as a venture debt provider, it was important for us to wait until some clarity emerged on the business models that would survive. BOX8 has demonstrated the ability to grow quickly with a focus on Indian food and has established a strong value proposition proven by high repeat customer behavior.”
As mentioned by Economic Times, Box8 clocked Rs 28 crores in revenues in FY16 and claims to have grown twice as much in FY17. The management is targeting a monthly revenue growth rate of 10% for FY18 even as it charts a 2.5x revenue growth target for the full year. Read more about Indian FoodTech Startups.