Dubai start-up Fruitful Day raises Dh3m in two funding rounds as it eyes growth
The company expanded its investor base with 40 new investors from countries including Switzerland and Singapore
Fruitful Day, a Dubai-based fresh fruit delivery company, raised Dh3 million ($816,726) in two successive fundraising rounds as it looks to expand operations despite Covid-19 headwinds.
The latest financing has expanded the healthy snacking company’s investor base, bringing on board 40 new investors from countries including the UAE, Saudi Arabia, Switzerland and Singapore, the company said in a statement on Wednesday.
Fruitful Day raised the funds through global equity crowdfunding platform Eureeca, which helps its members to invest in high-growth businesses.
“Investors were attracted by the strength of the brand and the resilience of the business to Covid-19 as we were able to significantly grow our home [delivery] segment and introduce new products to our customers,” Marie-Christine Luijckx, managing partner of the firm, said.
“Despite the obvious headwind, we have been able to maintain our growth story."
Launched in 2015 by three female entrepreneurs, Fruitful Day has grown consistently. The recent launch of a line of fresh fruit pops, has further supplemented its growth.
The company said it surpassed its original fundraising target, and will use new funds to focus on further horizontal and vertical expansion in the home market.
As the pandemic started, the management was able to “react and switch their focus from business-to-business to business-to-consumer home deliveries”, Siddarth Dalamal, head of investor relations at Eureeca, said.
“By delivering record numbers throughout a very difficult period, they showed their mettle and won investor confidence, causing the round to be oversubscribed."
Food delivery businesses have boomed after the coronavirus pandemic-induced movement restrictions led to a shift in consumption patterns across the world.
The UAE has also seen a steady growth in e-commerce as shoppers increasingly opt to order online, shunning shop visits. According to a survey by Checkout.com released this month, nearly 45 per cent of all consumers in the UAE said they expect to shop online more frequently next year.
Updated: November 18, 2020 01:47 PM