Poncho Hospitality Pvt. Ltd, which operates cloud kitchen platform Box8, has raised nearly $3.9 million (around Rs 30 crore at current exchange rates) as part of its ongoing Series C funding round.
The Bengaluru-based company has allotted shares and debentures to the US-based venture capital firm Mayfield and IIFL Seed Ventures Fund, according to regulatory filings.
Poncho Hospitality has issued 4,237 Series C3 compulsorily convertible preference shares to the Mauritius-registered Mayfield India II for Rs 23,599.46 per unit. Further, it has also allotted 8,474 compulsorily convertible debentures at the same price to IIFL Seed Ventures Fund.
In October 2016, Box8 raised $7.5 million (around Rs 50 crore) in its Series B round from IIFL Seed Ventures and Mayfield.
Box8, founded by Amit Raj and Anshul Gupta in 2012, operates as a full-stack food platform, from the preparation to the delivery of dishes. It services customers with a variety of cuisines, including Indian and continental dishes. The company raised $3.5 million (Rs 22 crore) in a Series A round of funding from Mayfield in May 2015.
Per VCCEdge, the data research arm of Mosaic Digital, Poncho Hospitality reported net sales of Rs 81.47 crore and Rs 133.02 crore for the 2017-18 and 2018-19 financial years. Other investors in the company include Indian Angel Network, Ganesh Ventures Fund, and venture debt provider Trifecta Capital.
Deals in the cloud kitchen segment
Box8 is among several cloud-kitchen startups that have raised capital from investors in recent months, with backers being attracted by the segment’s asset-light and low overhead approach. Furthermore, partnerships with delivery and food-technology platforms like Zomato and Swiggy have also enabled clout kitchen companies to access a wider base of customers.
Earlier this month, Rebel Foods Pvt. Ltd raised nearly $50 million (around Rs 382 crore at current exchange rates) in a fresh funding round from US-based hedge and investment fund Coatue Management. Rebel Foods operates brands such as Faasos and Behrouz Biryani.
Last month, Cross Border Kitchens Pvt. Ltd, which runs an internet-driven multi-brand food and beverage company, raised an undisclosed sum in angel funding led by Shreedhar Gupta.
In September, regional cuisine-focussed Zesty Kitchen raised Rs 3 crore in angel funding from a clutch of investors including former Abbott India managing director Rehan Khan, ITC Ltd divisional chief executive agribusiness Sanjiv Rangrass, Cleanmax managing director Kuldeep Jain and Suhail Sameer, the chief executive officer at RP-SG FMCG.