Mumbai-based ready-to-cook food solutions provider Fingerlix is planning to raise about $5 million as part of Series A investment round to set up central kitchens in new markets such as Pune, Delhi and Bengaluru.
The seven-month-old start-up expects a valuation of at least ₹100 crore to sell 25 per cent stake in the company to venture capital funds.
“After raising an angel round, we are now once again out in the market. Currently, we are in the final stages of raising $3-5 million from international VC funds and are seeking a ballpark valuation of ₹100 crore,” said Shrikrishna Bharambe, CEO and co-founder, Fingerlix.
The start-up has also been getting ‘feelers’ from FMCG companies for its food solutions.
With its current range of dosa batter and biryani mixes, FMCG companies, looking to enter the segment, have evinced interest in how the start-up operates in this space.
“Eventually, there will be more FMCG companies wanting to enter the food space, and we have been receiving inquiries from some of the big players since we have validated our business model” he said.
Of late, major FMCG companies such as Britannia have shown interest in start-ups, such as Bengaluru-based iD, as they want to enter the ready-to-cook market with chappatis.
Reaching out to nearly 50 modern trade outlets, Fingerlix now intends tapping into the general trade, and expects to reach out to 4,500 outlets with cold-chain facilities.
It currently has a single kitchen in Mumbai, but plans to add more cities such as Delhi, Bengaluru and Pune after it raises enough capital from its next round of fund raising.
Focus on menuOutsourcing technology and logistics to other vendors, Fingerlix intends to focus on developing its food menu.
“The retail distribution will remain with us, but the technology to develop the app and the call centre has been outsourced.
“Most of the food start-ups have gone belly up due to investments behind logistics and technology, while we have decided to focus on the food products,” Bharambe added.