Online fresh food platform FreshToHome posted a ₹146 crore loss in FY25, underscoring the ongoing profitability challenges faced by startups operating in the meat, fish, and fresh produce delivery segment. The financial performance reflects high operating costs, intense competition, and thin margins that continue to weigh on India’s online food supply chain businesses.
The development comes as investors increasingly push consumer startups to prioritise efficiency and sustainable unit economics.
What the ₹146 Crore Loss in FY25 Indicates
The disclosure that FreshToHome posted a ₹146 Cr loss in FY25 points to continued spending on logistics, cold-chain infrastructure, marketing, and customer acquisition. Handling perishable products requires temperature-controlled storage, fast delivery, and strict quality controls, all of which significantly raise operating expenses.
Despite steady demand for fresh meat and seafood, profitability remains difficult due to price sensitivity and wastage risks.
About FreshToHome’s Business Model
FreshToHome operates a farm-to-fork platform delivering fresh meat, fish, and seafood directly to consumers. The company focuses on sourcing from fishermen and farmers while maintaining cold-chain integrity until delivery.
This vertically integrated model helps control quality but requires heavy capital investment and operational discipline.
Key Cost Pressures Behind the Loss
A major contributor to FreshToHome’s FY25 loss has been logistics and supply-chain costs. Maintaining freshness across cities involves high spending on cold storage, processing centres, last-mile delivery, and spoilage management.
Marketing expenses and discounts to retain customers in a competitive market have also added to cash burn.
Competitive Landscape Remains Intense
The online fresh food and meat delivery segment faces competition from both specialised startups and large grocery platforms expanding into protein categories. Aggressive pricing, faster delivery promises, and subscription offers have compressed margins across the sector.
This environment makes it challenging for players to balance growth with profitability.
Investor Focus on Sustainability
Investors are increasingly scrutinising losses like the ₹146 crore deficit in FY25 in the context of long-term viability. While losses are common in logistics-heavy consumer businesses, backers now expect clearer paths to breakeven, improved unit economics, and tighter cost control.
FreshToHome’s ability to optimise operations will be closely watched.
Steps Toward Improving Financial Performance
Companies in the segment are focusing on reducing wastage, optimising delivery routes, and prioritising high-margin product categories. Technology-driven demand forecasting and selective expansion into profitable regions are also being used to improve efficiency.
FreshToHome is expected to continue refining its supply chain and cost structure.
Outlook for FY26
The path ahead will depend on execution, pricing discipline, and market conditions. If cost rationalisation measures take effect and customer demand remains stable, losses could narrow in the coming year.
However, achieving consistent profitability in fresh food delivery remains a complex challenge.
Conclusion
The news that FreshToHome posted a ₹146 crore loss in FY25 highlights the tough economics of India’s online fresh food and meat delivery market. While consumer demand for quality and convenience remains strong, managing costs in a perishable, logistics-intensive business continues to test startups.
How effectively FreshToHome balances growth with operational efficiency will shape its financial trajectory in the years ahead.
