Motilal Oswal Wealth Limited has made an investment of ₹100 crore, or approximately $12 million, in Bengaluru-based B2B seafood startup Captain Fresh. This is the second investment round the company has received in 2024, which indicates that the firm is still growing and expanding in the seafood space.
PC: The Economic Times
Captain Fresh, which has been majoring in sourcing and distributing fish and other seafood, would have grown into a notable size since its inception five years back. The funding was indeed made possible by the allotment of 1,002 preference shares at ₹9,98,399 each, according to a regulatory filing with the Registrar of Companies (RoC). This capital infusion is a strategic move toward an anticipated IPO, which will raise between $350 million and $400 million. The company has also appointed Axis Capital and Bank of America as bankers for this forthcoming IPO.
This is the second-biggest investment in the firm; its previous funding was reported as $48 million this ten months ago, led by Japanese entity SBI Investment that made the investment with many investors such as Evolvence Capital, British International Investment, Nekkanti Seafoods Group, Matrix Partners, Ankur Capital, and lastly Prosus together with Tiger Global. These developments will give the entity another 2.26% stakes held in Captain Fresh; consolidated its investor base yet further.
After this round of funding, Captain Fresh has been valued at around ₹4,424 crore, or roughly $526 million. This valuation gives credence to the fact that the company is trying to expand its business in all possible ways and take up a bigger chunk of the seafood market. The startup is proud of its diversified portfolio with over 100 species of fish and seafood procured from more than a dozen countries and catering to customers from over 30 nations. With offices in India, the United States, Dubai, Paris, Oslo, Amsterdam, and Madrid, Captain Fresh is strategically positioned to tap into international markets.
Captain Fresh has also been very aggressive in its pursuit of acquisitions to strengthen its market position. In the current calendar year, the company has bought three firms: Senecrus, a shrimp cooker and distributor based in Paris; CenSea, a seafood distributor in the US; and Koral, a seafood company located in Poland. These acquisitions will align with Captain Fresh’s expansion in its operational capabilities and product offerings in the competitive seafood industry.
Despite rapid growth—capturing a fourfold increase in revenue from ₹208 crore in FY22 to ₹817 crore in FY23—Captain Fresh faced significant challenges. The company posted a steep rise in losses, which rose 2.8 times to ₹296 crore during the same fiscal year. Aggressive expansion has been cited as the primary reason for this loss. Scaling operations incurs cost, which has increased due to rapid expansion.
Motilal Oswal’s latest investment in the fresh produce delivery platform, Captain Fresh, continues along the lines of its strategy to finance high-potential early-stage companies. In another sector, the company also led a $350-million funding round for quick-commerce platform Zepto and participated in online food delivery firm Zomato’s $1-billion fundraising through a Qualified Institutional Placement (QIP).
The investment positions the company for growth in the future while reaffirming investor confidence in the business model and operational strategy, as Captain Fresh prepares for its IPO and continues to expand its footprint in the seafood market. With an emphasis on innovation and expansion, it is well-poised to become a significant player in the seafood industry, not only in India but all over the world.
