[Funding alert] Foodtech startup Box8 raises $4M from IIFL Seed Ventures Fund and Mayfield Fund
Poncho Hospitality, the parent company of foodtech startup Box8, has raised about $4 million (Rs 30 crore) in its ongoing Series C funding round from existing investors including IIFL Seed Ventures Fund, and Menlo park-based Mayfield Fund, in a stock-and-debt deal.
The Mumbai-based startup has issued convertible debentures worth Rs 30 crore to IIFL while Mayfield Fund picked up Series C3 CCPs for Rs 10 crore in a bridge round, according to filings from the Ministry of Corporate Affairs, accessed by YourStory.
Poncho Hospitality Pvt. Ltd had previously raised Rs 12 crore debt via debentures from Trifecta Capital in three equal tranches.
The company, so far, has raised a total of $38.8 million in funding over 10 rounds, from investors including IIFL Seed Ventures, Mayfield Fund and Trifecta Capital Advisors.
Box8, which was launched as Poncho in 2011, started with a quick-service restaurant format by serving Mexican food. Later in 2014, it rebranded to its current name and also expanded its menu offerings.
Founded by IIT alumni Amit Raj and Anshul Gupta, the company prepares and delivers meals and snacks using its extensive delivery fleet. It claims to serve over one million meals every month, across its 110+ outlets in Mumbai, Pune, Bengaluru, and Gurugram.
Its latest fundraise comes against the backdrop of the COVID-19 chaos, which has severely squeezed restaurants' and food service providers' bottomlines. Banking heavily on customers placing orders on Swiggy and Zomato, many restaurants have already had to give up their retail spaces and pivot to cloud-kitchen formats.
Many others with their own delivery fleets have taken to delivering essentials, such as groceries, to stay afloat.
Box8, earlier this month, introduced a new feature called 'InstaFresh', allowing customers to order groceries including dairy products, vegetables, fruits, bread, snacks and poultry products, on its app.
Edited by Aparajita Saxena