Food technology start-up Holachef rustles up Rs 2-crore seed funding

MUMBAI: Holachef, a start-up in the food technology space, has raised seed funding of Rs 2 crore in a round led by India Quotient. It is also looking to raise Series A funding of Rs 20-30 crore in the coming months.

Holachef, founded in May 2014, curates amateur and professional chefs on its platform, allowing them to sell selected signature dishes. Once a meal order is placed, it takes care of packaging, storage and delivery. Orders have to be placed few hours in advance.

“We are not in a market where 30 minute delivery becomes the product itself. We are counting on the fact that people like to be planned when ordering food, especially lunch and dinner,” said CEO Saurabh Saxena, who founded the firm with Anil Gelra and Ritu Rana.

Holachef has seen number of orders per day increase from five when it started operations in September 2014 to over 150 in January 2015. The start-up initially started by serving Mumbai’s Powai area, and has now expanded to areas like Mulund, Andheri West, Ghatkopar and Malad. It is targeting 200 orders per day by February end.

Holachef’s seed round has been done in the form of a convertible note, which is a short-term debt that converts into equity when a start-up raises Series A funding. This helps the deal close quickly, as founders and early investors can wait till Series A to determine a valuation. For early risk, convertible note investors are typically given a pre-determined discount to Series A valuation.

India Quotient, which is currently investing from Rs 30 crore Fund I, has done several such convertible deals, one being food delivery start-up FRSH.

Source: Economic Times

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