Gurgaon-based food ordering startup Twigly has raised $600,000 in seed funding from Bengaluru-based Tracxn Labs, Hyderabad Angels, Freecharge founder Kunal Shah and Flipkart vice-president (engineering) Gaurav Bhalotia, among others. The company is looking to expand its kitchen-on-cloud business to Delhi and Bengaluru during the next 6-10 months. Also, the startup will use the money to expand into new cities and towards building a food brand that will be made available in supermarkets and online platforms.

Twigly, inspired by US-based Sprig, was founded in August 2015 by Sonal Minhas, Rohan Dayal and Naresh Kumar Kachhi. the company is currently in the process of creating back-end infrastructure to manufacture its private label products. You can expect its products to be available in places such as Godrej Nature’s Basket and Le Marche within the next six months, as per LiveMint report.

Twigly works on an online kitchen model where the food is made at a central kitchen and shipped to customers directly. The menu is limited and changes on a weekly basis. The company runs two kitchens in Gurgaon and delivers close to 150 orders a day and targeting to serve about 1,000 orders a day in the next three quarters. The company’s foray into packaged food category is expected to further boost sales.

“We aim to scale the business to $100 million in sales in the next seven to eight years,” according to Minhas. Twigly, which went live seven months ago, has a customer base of 6,000 people and currently has a 50-member team.

In November last year, Twigly raised $200,000 from angel investors, including Amit Gupta, co-founder of InMobi, Mukul Singhal of SAIF Partners, TracxnLabs, an incubator backed by Flipkart co-founders Sachin Bansal and Binny Bansal, and Deepak Singh of Anzy Careers.

Other players operating in the space include TinyOwl which merged with logistics firm RoadRunnr (Carthero Technologies Pvt. Ltd) in May to start a new entity called Runnr to stay afloat. Internet-first kitchen Spoonjoy and restaurant aggregator Dazo, which had marquee investors Amazon India chief Amit Agarwal, Google India chief Rajan Anandan and Flipkart co-founders Sachin Bansal and Binny Bansal, have shut down their shop in October after failing to raise substantial funds.

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