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Online Food Company Faasos Witness Four Fold Loss In The Financial Year End
Pune-based “Food on Demand” company Faasos, saw losses widen four-fold at the end of the Financial Year (FY) ended March 2016, mainly on account of higher expenses.
According to the reports in a survey, the total expenditure of the company rose from Rs. 168.7 crores from Rs. 58.1 crores in the year 2016. However, the company witnessed a loss of Rs. 111.1 crores which are four times to that of the loss incurred in 2015, Rs. 24.4 crores.
Net sales of the company increased almost 65% to Rs. 62 crores from Rs. 37.5 crores last year.
Co-Founder and CEO of Faasos told: “FY16 was a breakthrough year in terms of expansion of the company. But the cost of expansion debarred the revenue benefits accumulated.”
In November 2011, Faasos raised its first round of funding of $ 5 million from Sequoia Capital. Later in February 2015, the second round of funding of $ 20 million was raised from LightBox Ventures and Sequoia Capital. The third round of about $ 30 million was raised from Russian Internet-focused investment firm ru-Net apart from LightBox Ventures and Sequoia Capital.
Faasos was founded by Jaydeep Barman and Kallol Banerjee and incorporated in the year 2011.
It was only in 2015 when Faasos had constructed an app for it so that the user can order online through the app.
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