Hoi Food Concepts, which operates cloud kitchens under the Hoi Foods brand, has raised $2 million in a bridge funding round, dubbed as a pre-Series A round, led by returning investor 1Crowd.
The round also saw participation from Sprout Venture Partners and AngelList, as per a statement. Angel investors Samar Singla, founder of Jugnu; Mukund Kulashekaran, senior vice president of business at Urban Company; and Jaideep Mehta, CEO of Mosaic Media Ventures, which operates the parent company of this publication, were also part of the round.
The Gurugram-based company said it will use the fresh capital to enhance its network, improve technological infrastructure and strengthen its supply chain.
The company last raised capital in a $500,000 seed funding round in November 2018, which was led by 1Crowd and its investor community. Early stage investment firms Gemba Capital and Prime Holdings also infused funds in the company.
“We are building a very strong play in the cloud kitchens ecosystem and have been able to put together a decently large network in a very short duration. We feel honoured and excited to receive the confidence of all investors. I am also very confident and motivated to build our organisation much bigger and better with this,” Pawan Raj Kumar, co-founder of Hoi Foods, said.
Kumar set up the company in 2017 with Indrajeet Roy. The company claims to have more than 150 cloud kitchens across Delhi-NCR and Bengaluru.
Apart from its flagship brands Hoi Foods, Jacky Ching and Hoi Cafe, the company has Deez Biriyani Ketofy, Nirula’s, Misht, Smoodies and Cold Love on its network. The company also runs a dark shop model called Hoi Stores for hyperlocal delivery through aggregators.
The cloud kitchen segment has witnessed at least three deals in the past two months.
Earlier this month, FreshMenu raised approximately $400,000 from venture capital firm Lightspeed Venture Partners and serial entrepreneurs Ganesh Krishnan and Srinivas Anumolu.
Last month, Bengaluru-based Poncho Hospitality, which owns cloud kitchen platform Box8, raised $3.9 million in a combination of debt and equity from returning investors.
Around the same time, Coatue Management-backed Rebel Foods was in line to raise $50 million from the hedge fund.