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Havish Gupta
Figuring Outย โขย 1y
Farmers generally have to sell their produce at a lower price and also have to throw away a considerable portion, while consumers have to pay high prices for the same goods but still don't get good quality. Well, this is the problem Fraazo was trying to solve, but it failed. So Fraazo was started by Vikas Dosala, Atul Kumar, and Sumit Rai in 2018 in Mumbai. As I said earlier, their goal was to source fruits, vegetables, and other crops directly from farmers and deliver them to consumers. They use to offer 90-minute as well as one-day delivery. At its peak, they served over 7 cities, including Delhi, Pune, Hyderabad, Bengaluru, and their core market, Mumbai. They had raised a total of $61 million and had $12 million in revenue, according to Traxn. But then why did it fail? Well, the answer is very simple. Its growth mainly skyrocketed in 2020 when fruits and vegetables were hard to source, but once the lockdown ended and with the start of other startups like Zepto, Fraazo was losing its USP and had to offer discounts. Also, their operational costs were high, which led to a cash crunch. They tried to raise funds but couldn't due to the funding winter, and even their existing investors said no to a follow-up round. This forced them to close their operations in many cities, including their core market, Mumbai. Entrackr's source said that even when it raised a $50 million Series B round in Oct 2021 , only $30 million hit its account. I personally used it a lot both during the lockdown as well as after that and can say that its UI, quality, pricing, and everything else were superb. So, imo funding was the main reason for its failure. Btw do you think it's possible to make a similar brand today?
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