D2C brand servicing daily workplace consumption, F5 today announced that it has closed $350,00,000 (INR 2.5 Crores) as the first tranche of its Pre-Series A round while it is in the final stage for closing the second tranche in the next couple of weeks. The current raise saw participation from angel investors that include – Mohit Satyanand-Chairman Teamwork Arts who led through Lets Venture Platform, Gurgaon based Accelerator Huddle, AngelList, Venture Catalysts, Top Forbes Indian Angel Investor- Rohit Chanana, Dr. Jeevak Gupta- VP, Private Equity, InvAscent among others.
The company had earlier raised $400,00,000 (3 Crores) as part of its Seed Round in May 2020. The round then saw participation from Mohit Satyanand, Chairman Teamwork Arts, Huddle, Sanjay Jha, Co-Founder & CPO, LetsVenture, Kabir Kochhar- Partner, Anthill Ventures, Singularity Ventures- Family office of Madhusudan Kela, Chakradhar Gade and Nitin Kaushal- Co-founders of Country Delight.
F5 is founded by two IIM Lucknow alumni- Raghav Arora, who previously worked with Avendus Capital and Hindustan Unilever, and Lalit Aggarwal who has done his graduation from IIT Ropar and worked previously with ONGC. Currently, 95% of the workplace retail industry is served by local unorganized vendors who have limited resources and capabilities to cater to the changing needs of the customers. With covid increasing the general awareness about hygiene & quality among the masses, the company has already registered 6x growth in business subscribers Post-Covid and has served more than 50 Lac cups to date, serving more than 12000+ Cups per day to 6000+ Daily consumers.
The company will use the proceedings to tap the $34 billion daily workplace needs a market for consumers. In addition to this, the funds will also be used for R&D, customer acquisition, and tech development. Commenting on the fundraise Raghav Arora, Co-founder,F5 said “We are thankful to our investors for showing confidence in us and our business model. We are in the middle of closing the next tranche and are very hopeful of the coming times. Covid has made the general public more conscious of hygiene and quality and made them more tech-savvy. Demand for our products is highly inelastic which ensures our demand bounces back immediately post lockdowns”.
F5’s offerings are spread across three formats: Subscription, On-Demand as well as at Retail Outlets. Products are priced at the prevailing market rate (e.g. 8-10/cup of tea or INR 70/meal) with the assurance of good quality, hygiene and service. The company’s vision is to own the complete hyperlocal workplace ecosystem with consumers, efficient last-mile logistics, and capital-efficient retail presence.