Food delivery startup Box8 raises Rs 50 crore from IIFL and Mayfield

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BENGALURU: Food delivery startup Box8 has raised Rs 50 crore from IIFL Seed Ventures Fund and Silicon Valley-based early stage investor Mayfield. Founded by IIT graduates Amit Raj and Anshul Gupta, Box8 has operations in Mumbai, Pune, and Bengaluru via a network of 60 stores. The fresh capital is expected to help the company to reach deeper in existing markets and enter new cities. It claims to be do 12,000 deliveries per day currently. IIFL Seed Venture Funds is the venture capital and private equity arm of IIFL Wealth & Asset Management.

Prior to this, the company had raised about Rs 22-23 crore from Mayfield and bunch of angel investors including Mu Sigma CEO Dhiraj Rajaram, Avendus Capital managind director Kaushal Agarwal, among others. From sourcing raw material to preparation and then delivery, Box 8 takes control of each of these departments.

The funds help us in strengthening the supply-chain ecosystem, building superior technology, enhancing product development and expanding into new geographies” said Raj, adding that the firm is now looking to enter three to four new cities.

 Food delivery companies have been facing a tough time raising fresh capital as investors have turned cautious of the segment after companies such as Zomato and Tiny Owl were forced to cut work force and scale down operations. However, recently, online food delivery start up Swiggy raised $15 million in a round led by Bessemer Venture Partners.
 “This is our first investment in food business and we are excited about it. Since inception, Box8 has taken a full stack approach, where they manage and control all aspects of the chain. From procurement, to preparation, till last mile delivery; this has helped them tremendously to offer a seamless experience and build brand loyalty. Their ability to control the entire food experience is a strong value proposition,” said Prashasta Seth, CEO of IIFL AMC.

This article was originally published on TimesOfIndia

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