In the heart of Chennai, a remarkable success story is unfolding, capturing the essence of resilience, innovation, and entrepreneurial spirit. Freshma, a dynamic omnichannel seafood brand launched in February 2022, is making waves in the industry, promising to redefine how consumers experience seafood. With impressive monthly revenues of INR 2.1 crore and a remarkable 100% revenue growth since its transition to an omnichannel model in January 2023, Freshma is not just a business—it’s a testament to the power of determination and adaptability.
Foundations of Freshma: A Personal Journey
The brainchild of Rajesh Kumar, Freshma emerged from humble beginnings. Rajesh, along with his brothers Ram and Raj Kumar and childhood friend Paranthaman G., ventured into the seafood market after recognizing an opportunity for improvement in an industry often hampered by middlemen and quality control issues. Rajesh’s connection to the seafood trade runs deep, inspired by his father’s longstanding career with the Tamil Nadu Fisheries Department. As a child, Rajesh accompanied his father to work, developing an early understanding and appreciation of the seafood industry.
However, his dreams faced a setback when he applied for a position similar to his father’s and was rejected. Undeterred, he leveraged the contacts he had built over the years and opened his first fish stall in 2016, laying the groundwork for what would become Freshma. The initial venture began with a small loan of INR 20 lakh from family and friends, and Rajesh’s ambition was clear: to establish a presence in the Indian fish market and become the “Fish King” of Chennai.
Navigating Challenges and Finding Opportunities
Rajesh’s journey was not without its challenges. The seafood trade often involved dealing with intermediaries, which meant that the prices consumers paid were significantly marked up, while the fishermen received only a fraction of the profit. Observing this imbalance, Rajesh was determined to change the narrative. He opened additional stalls in 2017 and 2019, and by the time he established his third outlet, he was already supplying fish to larger players, only to realize that these intermediaries were selling the products at nearly double the prices.
The turning point for Freshma came with the onset of the COVID-19 pandemic. Like many businesses, Rajesh faced significant challenges as lockdowns shuttered his stalls and disrupted supply chains. This forced him to reevaluate his business model. With the support of his family and friends, he conceptualized Freshma as a D2C seafood brand, eliminating middlemen to provide consumers with high-quality seafood at competitive prices.
A Commitment to Quality and Sustainability
Central to Freshma’s business model is the focus on sustainability and quality. Unlike many competitors who rely on nets for fishing, Freshma prioritizes sourcing seafood directly from fishermen using hook-and-line methods. This approach not only ensures the freshness of the catch but also minimizes the risk of dead or stale fish, which can occur when nets are left in the water for extended periods. Rajesh and his team have limited their procurement to the Bay of Bengal, known for its superior fish quality.
“The key distinguishing factor in our procurement lies in the hook-caught seafood we sell,” Paranthaman G. explained. “Given that a fisherman’s net sits in a water body for 5 to 6 days, there are possibilities of catching dead or stale fish. Further, we have restricted our procurement to the Bay of Bengal because of the superior quality of fish in this region.”
This commitment to freshness and quality sets Freshma apart in a market often flooded with chemically treated seafood. Rajesh identified a significant gap in the market regarding the excessive use of preservatives and chemicals in fish products. “When it comes to choosing fish, consumers seek freshness and variety, but with today’s fast-paced lifestyles, convenience is key. Our aim is to provide this convenience and value, sans middlemen,” he stated.
Leveraging Digital and Social Media Influence
Since its inception, Freshma has embraced an omnichannel strategy, offering customers multiple avenues to purchase seafood. The brand quickly gained traction, becoming a favorite among consumers. A significant contributor to Freshma’s visibility is Paranthaman G., who also serves as the group CEO. With over 200,000 followers on Instagram, Paranthaman uses his influence to promote the brand and enhance its aesthetic appeal. His online presence has helped establish a strong connection with consumers, creating a loyal customer base eager to explore the offerings of Freshma.
The company has expanded its physical presence, currently operating eight stores in Chennai. Freshma has harnessed the power of digital marketing and social media to strengthen its omnichannel approach, allowing customers to experience the brand both online and offline.
Looking Ahead: Growth and Expansion Plans
Freshma’s growth trajectory is nothing short of inspiring. The brand is poised to achieve FY24 revenues between INR 35-40 crore, with INR 46 lakh expected from its online business alone—a 100% increase from INR 17 crore in FY23. With a robust foundation in place, the company plans to open three additional stores in Coimbatore in the upcoming quarter, further expanding its footprint in Tamil Nadu.
However, the path to success is not without its challenges. Freshma aims to convert its offline customers into online shoppers, a task that requires significant investment in advertising and marketing. To support this growth, the company is actively seeking to raise INR 20 crore in seed funding.
“As of now, the most pressing task at hand is to convert offline consumers to online,” Paranthaman emphasized. “Our first appearance outside Chennai will be in Coimbatore with three stores in the next three months. Bengaluru and Trichy will follow next. But, online growth will need more investment in terms of advertising and marketing.”
A Model for Future Entrepreneurs
The journey of Freshma is a powerful narrative of resilience, adaptability, and the relentless pursuit of excellence in the face of adversity. Rajesh Kumar and his team have transformed challenges into opportunities, setting a benchmark for aspiring entrepreneurs in India’s seafood industry and beyond.
As Freshma continues its quest to become the “Fish King” of Chennai, it embodies the spirit of innovation and determination that characterizes the thriving Indian startup ecosystem. The company’s story is a reminder that with passion, a commitment to quality, and a focus on consumer needs, it is possible to carve out a unique space in a competitive market.
With a strong vision and a dedicated team, Freshma is not only positioning itself for success but also inspiring a new generation of entrepreneurs to chase their dreams and disrupt traditional markets. As they chart their course, the seafood brand’s impact on the industry is poised to be significant, ensuring that fresh, quality seafood is accessible to all. The future indeed looks bright for Freshma and the values it stands for.
Source: Inc42
