FreshoKartz: Supplying Fresh Fruits & Vegetables to hotels

Click here to request the pitch deck.

Freshokartz has severed 100+ Mid-size Hotels, Restaurants and Retailers (Currently focused in Jaipur to fine-tune model and processes). They have strong sourcing capabilities (direct sourcing from Farmers/Mandi) and have robust processes for operational efficiency.

Problem

The supply chain for Fresh Fruits & Vegetables to hotels is broken and unorganized, resulting in lack of reliability on quality and prices, inefficiencies (including wastage).

Freshokartz provides hotels and restaurants guarantee of quality and reliability at fair prices

Freshokartz model leverages technology coupled with sourcing, sorting and delivery processes to redefine the price-value equation.

They are currently targeting small & mid-sized hotels as the value proposition of quality and reliability at fair prices is the strongest for them.

Competitive advantage

Freshokartz Competition is largely with three categories:

Local Vendors: Freshokartz is superior in terms of Quality, better pricing, proper handling & customer support

Mandis: Daily price negotiations, no quality control, no doorstep delivery & improper handling

Other competitors (like Ninjacart, Farmtaaza, waycool): Few are solving farmers problems, facing challenges in operational efficiencies, and some are buying from vendors & aggregators

Robust processes & operational efficiency create a strong value proposition for Freshokartz over local vendors that service mid and small hotels.

Tech-Enabled Platform

  • Web and mobile apps for Bulk Purchasing & Orders Management
  • Creates Price Transparency for all the Customers
  • Helps to forecast the demand & reduce wastages
  • Effective internal reporting – Sales, consumption data

Proficient Operations

  • Systematic Sorting of Items
  • Grading Process for better identification
  • Proper Packaging of Items – retains freshness, eliminates wastage, and looks professional

Direct Sourcing

  • Direct Buying from Farmers & Mandi Aahrtiyas
  • Ensuring better pricing
  • Quality control

With the small team of 20 (including logistics team), Freshokartz has been able to standardize and automate the processes, enabling them to build a foundation to scale to the next level.

Business case and unit economics

Average Order Size per Customer (Hotel, restaurants, retailers etc.) ranges from 70-85k per month. Freshokartz keeps an average Margin on Sale between 20%-25%.

As part of scaling the operations, Freshokartz will be opening ‘collection centers’ in villages, where the items will be sorted and accumulated directly from farmers & transported to their warehouse in city, it will give further boost to margins by 6-8%.

Team with entrepreneurial, professional and agri experience

Rajendra Lora - Co-Founder and CEO

  • Farming experience in early age
  • Worked as software developer and Project Manager in 2 startups
  • B-Tech from IIIT Jabalpur in Computer Science and Engineering

Nagendra Yadav - Co-Founder and CFO/CMO

  • Worked in Farms along with schooling
  • Worked with SAS Middle East and SAS Australia as a Techno-management/Techno-Functional Consultant
  • B-Tech from IIIT Jabalpur in Computer Science and Engineering

Suresh Kumar - Sr. Sales Manager

  • 7 Years of Sales experience in different industries
  • Worked as Sales Manager for DAG/Bajaj in Nigeria and Dubai
  • MBA from IBS Pune in Marketing/Marketing Management  

Traction

  • Operating since December 2016
  • 100+ B2B customers served (in various parts of Jaipur)
  • Currently on track to add 25+ hotels pm
  • Current revenues Rs.20 Lacs pm, on track to go to Rs. 2 Cr. pm by Dec 2018
  • Tie-ups with 100+ farmers/Aahrtiyas
  • Revenue during Jan-Dec 2017 – INR 2.3 Cr.
  • Cash Positive since December 2017
In addition to 100+ mid-sized hotels, Freshokartz has a few larger brands (though their current marketing efforts are directed to our core target audience i.e. mid-sized hotels)

Go to Market & Scale up plans

Freshokartz target market would continuously be Mid size hotels, restaurants, retailers (like Big Bazaar, Reliance fresh) etc. (Focusing only in Jaipur for 2018)

  • In next 12 months, we would primarily be focusing on creating brand visibility, building operational bandwidth & workforce training
  • In next 18-24 months,
    • We will increase our service areas in Jaipur
    • Will add loyalty programs for customers
    • Create a dedicated dashboard for customers
    • Start setting up collection centers in villages
    • Warehousing & Storage outsourcing solutions

By end of 2019, Freshokartz aims to serve 1,000 hotels in Jaipur + 3-4 cities in Rajasthan, and achieve a turnover of Rs.60-62 cr.

This will also help build the foundation to gradually expand to other cities across India.

Fund raising

Freshokartz is currently closing a small family & friends round as a convertible note.

By June, Freshokartz will be well-positioned to raise a follow-on round to scale up as per plans.

Request their investor pitch deck

Click here to request the pitch deck.

FreshoKartz is part of Qrate - a unique fundraising assistance program by the Government of Rajasthan. The program is free for startups and is open to startups across India.

The Qrate program follows the ‘Assess-Improve-Access’ model wherein startups are first provided a detailed assessment report and Applyifi scorecard, based on which startups undergo customized and group skill-building and mentoring programs. Once ready, startups are connected to investors and potential customers. Startups that graduate from the program will also get fast-tracked to pitch for grants and investments from the Government of Rajasthan.

Click this link to register - http://istart.rajasthan.gov.in/vc-score

All participating startups are given the iStart and QRate cards, which provides them access to several benefits and offers from partners. All startups start with the basic iStart card but move up the ladder – bronze, silver, gold, platinum and signature cards – as their scores improve. Depending on their Qrate score, Startups are eligible for a tiered structure of online and offline benefits, including via partners.

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