Foodmandu, which started as an online restaurant food ordering venture in Nepal around a decade ago, is roping in Dolma Impact Fund as its third private equity investor as it seeks to build a fresh food and grocery delivery business and add cloud kitchens to expand its core business.
The development comes two months after The Capital Quest first reported on the impending fundraise and Dolma being the likely new backer.
Foodmandu has signed an initial agreement with Dolma Impact Fund for $4 million (NPR 46 crore) in funding in what is believed to be its Series C round.
Nepalese SME-focused private equity firms True North Associates and Team Ventures had put in small sums of money in Foodmandu in 2016 and 2020 in Series A and Series B rounds, respectively. The funding in 2020 from Team Ventures also provided a partial exit to True North Associates.
Foodmandu, Nepal’s first food delivery company, says it has more than 800 restaurants on its platform and has a customer base of over 300,000 across Kathmandu, Lalitpur, Kirtipur, Bhaktapur and Pokhara.
Along with food delivery, Foodmandu also provides grocery and beverage delivery services through its separate verticals Foodmandu Fresh and Foodmandu Bar.
With the funding from Dolma, Foodmandu intends to focus on developing its core service while adding some new verticals and geographical expansions.
Manohar Adhikari, founder of Foodmandu had recently told The Capital Quest that a major portion of the fresh money will go for cloud kitchens where Foodmandu will collaborate with existing restaurant chains to set up ancillary units in different locations to cater to demand and manage the logistics more efficiently.
It will also pump in money to boost its more recent business vertical of grocery delivery, besides enhancing its technology backbone and team capacity.
Foodmandu currently has annualised gross merchandise value of around $4-5 million, having grown 70% over the last year after facing some slowdown during the early part of the Covid-19 pandemic.
Foodmandu competes with companies such as Bhoj, Foodmario, JustNep, Pathao, BhokLagyo, Foodmood and Quikr Food.