Captain Fresh in talks to raise up to $100 million from new and existing investors

Bengaluru/Mumbai: Captain Fresh, a business-to-business seafood marketplace, is in talks to raise up to $100 million from new and existing investors at a valuation of $600-650 million, three people familiar with the matter told Mint.

"The round is expected to be $50-100 million. Existing investors like Accel and Prosus are expected to infuse more capital while some new investors have also issued term sheets," one of the people cited above said. While it is a largely primary round, there is likely to be a secondary component as demand builds up, the person added.

"The round will close in the coming months and may be a part of the company's pre-IPO round," a second person said. 

A spokesperson for Prosus said, “We do not comment on market rumours or speculation." Accel and Captain Fresh did not immediately respond to Mint's request for a comment.

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Earlier this week, Prosus said Captain Fresh was likely to tap the public markets. The company has appointed Axis Capital and Bank of America for its $400-million initial public offering (IPO) in 2025, according to a report by Moneycontrol.

The potential capital infusion comes more than a year after Captain Fresh raised $48 million in a round led by Evolvence India and British International Investment at a valuation of $500 million. Its other investors include Tiger Global Management, z47 (formerly Matrix Partners), Innoven Capital, Incubate Fund India and Ankur Capital, according to market intelligence provider Tracxn.

Large deals trickling back

The Indian startup ecosystem is seeing growing interest for large deals in select companies at realistic valuations, in contrast to the pandemic years when capital was more abundant and valuations were stretched. For instance, Prosus has invested $80 million in supply chain financing company Mintifi while omnichannel beauty e-tailer Purplle has snagged $120 million in a round led by Abu Dhabi Investment Authority.

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Founded in 2019 by banker-turned-entrepreneur Utham Gowda, the farm-to-retail startup aims to transform India’s seafood supply chain by aggregating fragmented retail demand across the country and linking it to small fishermen and farmers along the coast. It offers a digital commerce platform and a physical fulfilment layer for retailers across multiple formats. It also operates in overseas markets including the US, Spain and the Middle East. It competes with startups such as WayCool, Apnaklub and FarMart.

In FY23, Captain Fresh reported total revenue of ₹801.3 crore, up from ₹211.5 crore a year earlier. Its losses widened to ₹288.4 crore from a loss of ₹113.2 crore in FY22, according to Tracxn data.

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