FreshToHome, the Bengaluru-based pioneer of the meat and seafood delivery business, will drastically enhance its capital runway with the new debt capital round. Based on the latest regulatory filings obtained through the Registrar of Companies, the startup board has made a special resolution to raise ₹75 crore (approximately $8.5 million). This action represents a strategic change or an additional financing layer that is aimed at sustaining the huge operations that the company has in the Indian and Middle Eastern markets. The injection of new capital follows the startup as it continues to deal with a competitive and capital-intensive direct-to-consumer environment, supporting its status as a key player in the perishables segment.

Debt funding and business expansion

The debt financing is designed by issuing 750 non-convertible debentures, also known as NCDs. These instruments have been issued at a face value of ₹10 lakh each, thus totaling to ₹75 crore. Trifecta Venture, which is one of the leading players in the venture debt market, is the primary lender in this debt round and has funded a number of high-growth startups in India. FreshToHome is taking a non-convertible debt financing route, which enables it to raise substantial capital without massively diluting equity, as is common in a mature startup that intends to use this financing method to maximize its capital structure but use the funds to finance either growth or working capital.

The move to increase debt highlights the faith of the company in its cash flow management and its capacity to meet the long-term liabilities. Such rounds are commonly employed in the wider context of the startup ecosystem to either fill in the intervals between equity rounds or to cushion operational costs as a company grows to profitability. One more confirmation of the business model of the company and its creditworthiness in the financial community is the involvement of Trifecta Venture, which is the kind of liquidity needed by the company to keep pace in a rapidly developing market.

The funds of this ₹75 crore debt round are dedicated to extremely specific and crucial business activities. As indicated in the filings of company, the capital will be used mostly to cover the working capital needs of the firm. The supply chain, which is complicated and includes logistics, cold storage, and sourcing of meat and seafood through a huge network of farmers and fishers, is a working capital requirement in the meat and seafood delivery business.

The fund will be used to set aside a fraction of the money to cover general corporate purposes. This general category gives the management team the freedom to meet different types of internal demands, including technology improvements, branding, and administrative expenses. Since the company aims to enlarge its presence and optimise its delivery models, a solid base of general corporate funds is essential in ensuring that it is agile and can react to changes in the market. This inflow of capital will help it to be stable in its mission of delivering chemical-free and fresh products to its increasing clientele.

FreshToHome also entered the quick commerce arena strategically in February of the previous year, in an attempt to keep pace with the consumer trends. This service specializes in incredibly quick deliveries, whereby fresh meat and seafood are delivered to customers in a range of 10-15 minutes. This initiative demands a streamlined supply chain and a saturated network of dark stores or delivery centers. The existing debt financing will probably contribute to the logistic needs of this fast-delivery division, so that the brand can be competitive with the other fast-delivery platforms without losing its principle of freshness and quality.

Financial performance

FreshToHome registered a drop in its operating revenue in the fiscal year ending in March 2025, according to the data of the startup intelligence platform TheKredible. In particular, the revenues on operations decreased by 12.3% annually, passing ₹369.55 crore in the 2025 fiscal year, compared to ₹421.33 crore in the 2024 fiscal year. This decline in earnings implies a phase of consolidation or a change in the market forces that the company is passing through at the moment.

Although the growth in its top line is on a downward trend, the company has been progressing in its quest to ensure it becomes financially sustainable. FreshToHome was able to reduce its net loss in the same period, which is a reduction of 2.3%. Its net loss in the 2025 fiscal year was ₹146.32 crore as opposed to a loss of ₹149.73 crore in the previous year. This reduction in the loss is a good sign that the firm is increasingly getting efficient in its operations and is managing its costs better despite the revenue headwinds. The new debt issue must be a strategic measure to help this shift to a more sustainable financial framework.

Conclusion

The decision by FreshToHome to increase debt financing from Trifecta Venture by ₹75 crores is a calculated measure that will provide the company with some continuity and ensure that its operations continue and that it remains financially stable.

With the help of this new capital as working capital and general corporate purposes, the startup is strengthening the infrastructure it needs to sustain its innovative quick commerce efforts and its conventional delivery model. During its maneuvering in the 2026 fiscal year, the balance between past equity success and new debt liquidity will play a significant role in determining the new chapter of its journey in the competitive food-tech industry.