Box8 raises Rs7 crore debt from Trifecta Capital
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New Delhi: Box8 owned by Poncho Hospitality Pvt. Ltd Tuesday said it has raised Rs7 crore in venture debt from Trifecta Capital.
This follows a series B funding of Rs50 crore it raised from IIFL Seed Ventures Fund and existing investor Mayfield Fund in October last year.
Started in 2012, Box8 prepares and delivers meals to customers in Mumbai, Pune and Bengaluru. It began as a quick service restaurant for Mexican food but changed its menu to Indian and changed to its current brand in January 2014.
Venture debt helps where traditional bank lending is not available, co-founder Amit Raj said, and does so without diluting equity. “This will help us maintain a balance in our financial structure and at the same time, keep growing at a rapid pace,” he added.
The start-up said it will invest the funds towards operations in existing markets and to launch in other cities. Box8 will roll out in Gurugram in the National Capital Region next month and in Hyderabad and Chennai in the following months.
Recent deals suggest start-ups are warming up to venture debt as an alternative to raising capital from venture capitalists. Earlier this month, e-commerce firm ShopClues raised Rs50 crore debt from InnoVen Capital, while BigBasket (SuperMarket Grocery Supplies Pvt. Ltd) raised Rs45 crore in March.