Box8 is a multi-product food delivery brand catering to Indian delicacies at an affordable price. The Box8 founders focused on capital efficiency – maintaining the right balance of debt and equity to finance growth. Their requirements were to invest significant capital in new kitchens while not using only equity. Due to the fast-changing environment, Box8 felt the need for speed and flexibility from a financing partner.
We invested venture debt capital in Box8, spreading this investment across multiple tranches to optimize the interest paid, while matching flows of capital to the needs of the business. We also extended follow-on support to help manage refurbishments of some existing kitchens in the Box8 network.
Box8 is now one of the rare capital efficient food-tech companies which has broken even, and has used venture debt innovatively to fuel growth in new locations as well as existing locations. This growth led to significant improvement in the business valuation, assisting the promoters and investors to raise equity on more favourable terms.