Chennai-based industrial catering services company Fusion Foods and Catering Pvt Ltd has raised funds from facilities management company Updater Services Pvt Ltd, also based in Chennai.

Fusion Foods, which serves industrial clients in Tamil Nadu and Andhra Pradesh, will use the money to expand its services to other cities, riding on Updater Services’ pan-India presence. Fusion Foods hopes to grow its revenues from about Rs 75 crore now to around Rs 200 crore in the next five years.

According to K Sridhar, founder and Executive Director, Fusion Foods, the company serves about 45,000 meals and 65,000-70,000 cups of beverages every day. Its clients include Infosys, Wipro, JK Tyres, Sterlite Copper and Royal Enfield.

A press release issued by Veda Corporate Advisors, which was the financial advisor for Fusion Foods and its promoters for the deal, said the transaction involved UDS providing an exit to angel investors and also funding future growth. The investment also provided UDS with an entry into the industrial catering space.

Sridhar said there was scope for Fusion Foods and UDS to cross-sell each other’s services and, at a later date, offer integrated facilities management, including catering.

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