Here's how Freshmenu's revenue grew by a whopping 124% this year

MUMBAI: An increasingly strong hold over the model with a cautious expansion strategy has helped Freshmenu grow its revenues by a whopping 124% to Rs 70.9 crore in FY17 from Rs 31.7 crore last year, as per documents filed with the registrar of companies and accessed from market research platform Tofler.

While FY17 losses increased to Rs 42.2 crore, the pace of increase has been capped at 25% from Rs 33.7 crore in FY16, the documents show. Freshmenu’s surge in losses in FY16 were at its peak having ballooned to over 13 times from FY15.

Investments in deepening its cloud kitchen model in existing cities rather than newer markets have helped Freshmenu script a stronger growth path at a time when the entire food tech industry is on tenterhooks to win back investors’ trust, after the sector saw a huge dip in investments in 2016. Much of the investment is being funnelled to fuel growth within existing markets so as to further boost its 13,000 orders per day mark.

Despite a slowdown in the pace of losses, the company has seen a massive 73.5% rise in expenses at Rs 118.3 crore with ad expenses alone swelling 181% to Rs 14.4 crore. Freshmenu is targetting a 2x growth in revenue for FY18 even as it chalks out a path to profitability — one of the biggest thorns in the food industry.