FreshMenu Business Model: How FreshMenu Started, Revenue Model, Funding & Growth

In the early days, food lovers visited new and different places to taste delicious foods around the country. But now the process has changed, you can taste more than a thousand delicious dishes from different states and countries at your home with just a few clicks on your smartphone.

There are hundreds of food startups competing to serve delicious food to customers. FreshMenu is one of them that is constantly providing a great service to the customers with their delicious food.

Let’s discuss FreshMenu in detail,

How FreshMenu Started?

Freshmenu was started by Rashmi Daga in 2014 in Bangalore. The idea behind the Freshmenu is to deliver food from the new menu every day.

When she moved from Frazer Town to Sarjapur in Bangalore, she struggled to get quality food nearby. At the same time, she became a new mother, and after juggling a long day job, it’s difficult to cook food. Because the good restaurants were fairly far away. 

The size of the opportunity and love for good food got her super excited about a food start-up. And a Freshmenu started.

It’s services are available in Bangalore, Delhi NCR, Mumbai and Thane.

Food Categories in FreshMenu

FreshMenu divided it’s menu in the following categories,

• Breakfast
• Match Day Combos
• Wok Station
• Continental
• Fit N Fab
• Big Biriyani Co.
• Indian / Thalis
• Snacks
• Appetizers
• Wander Crust Pizzas
• Dessert

Funding Rounds of FreshMenu

FreshMenu has raised $45.2 million across 8 funding rounds so far. Its biggest funding came in April 2022, when the company raised $18.9 million in a Series C round, led by Florintree.

Source

Features Of FreshMenu

1)- Fresh Ingredients: The startup uses farm-fresh, high-quality ingredients daily.

2)- Daily Changing Menu: The unique selling point of FreshMenu is its dynamic menu that changes every day to keep things exciting.

3)- Highly Experienced Chefs: At FreshMenu, you’ll get food made by highly skilled chefs who create even better dishes.

4)- World Cuisine: Here, you’ll get a variety of international dishes from across the globe, from Italian, Mexican, to south asian.

5)- Fast Delivery: Your healthy and delicious meal is delivered within 30-40 minutes on time, ensuring freshness and quality.

FreshMenu Business Model – How FreshMenu Works? 

FreshMenu operates on a full-stack business model. They manage the complete day-to-day operations from getting raw materials to the finished dish to the table. All things are managed by the FreshMenu team. This helps them to maintain high-quality fresh food and service. 

They serve food within a radius of 4 to 5 km from their local cloud kitchens. Customers can also choose the takeaway option.

FreshMenu also provides gift cards, attractive offers, and rewards to its customers on a daily basis on its website/app. 

Also, their cloud-based restaurants are available on all food-aggregator apps like Zomato, Swiggy, and Uber Eats. They get around 60% of orders from these food aggregators and 40% from their own app/website.

How FreshMenu Earns Money: Revenue Model Of FreshMenu

FreshMenu earns revenue through multiple income streams, with a strong focus on selling its own food rather than relying on commissions like many food delivery platforms.

1. Revenue from Food Sales

The primary source of FreshMenu’s income comes from the food it prepares and sells. Since FreshMenu operates its own cloud kitchens, it earns directly from every order placed. This is different from food delivery platforms that mainly earn through commissions from restaurants.

2. FreshPass (Meal Pass)

FreshMenu also generates revenue through FreshPass, i.e, a meal pass that helps users save money on upcoming orders and enjoy faster checkouts. Here, users also get discounts of up to 33% and cashback on orders.

3. FreshClub Membership

It also earns from its membership, named “Freshclub”. This membership offers a savings of up to Rs 3000/month with just Rs. 69. Currently, FreshClub has more than 3 lakh members, and the count goes on. With this membership, you will get free delivery, cashbacks, reward points, and access to exclusive recipes, etc.

Also check out how Wow! Momo (India’s Fastest QSR Business Model) Earns.

Freshmenu Competitors

1)- Swiggy

2)- Zomato

3)- Rebel Foods

4)- Box8

Interesting Facts About FreshMenu

• FreshMenu operates 72+ cloud kitchens across Bengaluru, Mumbai, Delhi NCR, and Kolkata. And aims to expand to 100+ cloud kitchens in the near future.

• Freshmenu claims a customer base of over 10 million users and has 500,000+ monthly active users.

• FreshMenu offers 300+ SKUs, including packed meals and snack boxes. The company serves corporate employees through curated meal and snack options.

• FreshMenu is planning to scale its direct-to-consumer website into a B2B2C sales platform.

• The company hasn’t shared its FY25 financials, but the founder says it is currently running at an annual revenue rate of ₹150 crore and is aiming for ₹200 crore in FY26.

FAQs – FreshMenu