FreshMenu, founded by Rashmi Daga in 2014, was once on the brink of collapse. Today, it stands tall with an annualised revenue run rate of INR 150 crore, proving that resilience and smart strategy can revive even the most troubled startups.
The Rise: Early Success in Cloud Kitchens
FreshMenu was a pioneer in India’s cloud kitchen space, offering global cuisines, a daily-changing menu, and reliable 30-minute delivery. It’s an integrated model-controlling everything from cooking to delivery-set it apart from typical restaurant aggregators. By FY18, FreshMenu crossed the INR 100 crore revenue mark, with a presence in metro cities and a loyal customer base.
The Fall: Cash Crunch and Covid Crisis
Despite early wins, FreshMenu’s rapid expansion brought high operational costs. The company faced stiff competition from giants like Zomato, Swiggy, and Ola Foods, who also tried to master the cloud kitchen model but eventually scaled back due to sustainability issues.
The situation worsened during the Covid-19 pandemic. Lockdowns slashed demand, and FreshMenu’s revenue crashed from INR 138 crore in FY19 to just INR 50 crore in FY21-a staggering 63.7% drop. Acquisition talks with Ola Foods and Oyo fizzled out, and the company was forced to shut down several kitchens and lay off staff.
The Turnaround: Leaner, Smarter, Stronger
Cost-Cutting and Operational Efficiency
Rashmi Daga led a painful but necessary restructuring. She closed unprofitable kitchens, trimmed the workforce, simplified the menu, and switched to more cost-effective packaging. The brand also focused on its strongest markets- Bengaluru, Mumbai, and Delhi NCR-instead of spreading too thin across new cities.
Focus on Core Markets and Direct Sales
FreshMenu shifted its strategy to ensure 100% coverage in existing metros, making it easier for customers to order from anywhere in those cities. The company also invested in its own website and app, aiming to reduce dependency on aggregator platforms and boost direct-to-consumer sales.
Funding and Product Innovation
In April 2022, FreshMenu raised INR 50 crore to expand its kitchen network and launch new food brands. The menu evolved to include plant-based protein, grain bowls, and zero-sugar desserts, catering to changing consumer preferences.
Results: Revenue Rebounds, Losses Narrow
The turnaround worked. By FY24, FreshMenu’s revenue rebounded to INR 120.95 crore, a 72% year-on-year jump, while losses narrowed to just over INR 8 crore. The brand now operates more than 72 cloud kitchens across major metros, serving over 500,000 monthly active users and 10 million+ customers.
What’s Next: Ambitious Growth Plans
FreshMenu is not stopping here. The company targets INR 200 crore revenue in FY26 and plans to expand to 100+ kitchens. It is also eyeing new retail formats in malls, airports, and corporate hubs to reach more customers.